The oil and gas sector initially traded higher but quickly reversed gains. BP and Shell were both in negative territory, both closing in the region of 3 percent lower.
Prices of both Brent crude and WTI oil plummeted over 7 percent on the day, but the weakness came after a stunning rally over the past few days which has seen Brent back above $50 per barrel. Prices fell back towards $50 on Tuesday, with Brent for October delivery losing over $4 to trade just under $50.
Meanwhile, shares in London-listed hedge fund manager Man Group finished down almost 7 percent after the company's China business was taken into custody to help authorities probe the recent market volatility, according to reports.
Swedish medical firm Elekta saw shares surge nearly 8 percent after reporting strong first quarter earnings.
Shares of pharmaceutical giant AstraZeneca, outperformed the broader index, closing down about 2 percent, after it granted Canada's Valeant Pharmaceuticals an exclusive license to develop its psoriasis drug Brodalumab.