London's FTSE 100 ended flat, with miners the major under performers as commodity prices remained in focus. The French CAC recovered, finishing up 0.7 percent, while Germany's DAX ended around 0.3 percent lower.
The DAX sank as much as 1.3 percent lower earlier in the session, hitting its lowest level in over a month, with Reuters attributing this to the weak manufacturing data from the state of New York.
Greece's stock exchange outperformed other indexes, finishing 1 percent higher.
U.S. stocks traded higher on Monday after the release of positive homebuilder data as investors digested weak manufacturing data and falling oil prices while eyeing the release of the Federal Reserve's minutes.
In the U.S., investors were digesting the latest manufacturing data. The National Association of Home Builders index rose 1 point to 61, its highest level since November 2005. However, New York's manufacturing activity fell from 3.86 in July to -14.92 in August, its lowest since April 2009; causing ripple effects for the German DAX.