Several thousand people marched along major downtown streets including Saint Catherine St. and Rene Levesque Blvd.
Police arrested at least four people on assault charges and say at least a half dozen police cruisers were vandalized.
A window at a C-I-B-C branch was shattered by vandals as protesters yelled at them to stop what they were doing. Police, who were pelted with various projectiles at various points, used pepper spray against a small group.
A similar protest hours earlier on Tuesday saw at least three people arrested for assault, while another was ticketed for wearing a mask.
Student groups are upset with stiff budget cuts expected in the Quebec budget to be delivered on Thursday. Protests denouncing the austerity plan have also been held in Quebec City.