Concerns about oil prices continued to weigh on equity markets. Brent crude oil slipped to a five-year low below $65 on Wednesday after the Organization of Petroleum Exporting Countries (OPEC) forecast lower demand for its oil next year.
BP shares closed around 1.6 percent lower after the oil supermajor announced a cost-cutting program in response to tumbling oil prices. Other oil giants also performed poorly, with Royal Dutch Shell ending down around 2.4 percent.
Read MoreBP expects $1B restructuring charge
Greece fears; Ukraine watched
In Greece, Prime Minister Antonis Samaras named his candidate on Tuesday for a snap presidential vote to be held next week. Samaras called the election on Monday, surprising investors and causing the Greek stock market to plunge and pushing bond yields higher.
The benchmark Athens stock index closed down around 1 percent on Wednesday.
Meanwhile, tension between Ukraine and Russia remained heightened after Ukraine's military accused separatists of violating a a ceasefire. The ceasefire was hoped to be a prelude to a more lasting cessation of hostilities.
Read MoreUkraine: IMF finds $15B black hole in finances