Cyclical stocks like travel & leisure and autos were the session's major laggards. European airlines posted sharp declines, with analysts citing the spread of Ebola to Spain as a key reason for the fall.
Sentiment was further knocked after the Organization for Economic Cooperation and Development (OECD) said it expected the euro zone economy to slow over the coming months.
Read MoreEuro zone growth seen weakening: OECD
Air France shares tumble
Shares of Air France-KLM closed down around 3.8 percent after the company said a pilots' strike would set it back 500 million euros ($632 million), hitting profits.
Shares of U.K. transport firm Firstgroup closed down 4.8 percent after it announced it had not won a rail franchise in Scotland.
On London's AIM Index, shares of London Mining tanked a whopping 76 percent after it warned that there might be little value left in its shares.
Telecom operator Swisscom saw it shares close around 2 percent higher after Reuters reported it was considering selling its Italian broadband unit Fastweb.
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