Oil prices suffered on Friday following the Fed's warning on the health of the global economy. Brent crude and WTI crude oil were both down well over $1 around the close of European markets, hitting energy stocks.
Insurance stocks were among the worst performers on Friday after the Fed's decision. Insurance companies benefit from higher interest rates because it means they get higher yields on the government bonds they invest in.
Dutch life insurance company Aegon closed near the bottom of indices, down more than 6 percent. Britain's Aviva and Prudential both finished more than 2.5 percent lower.
Banking stocks - another sector that benefits from higher interest rates - also took a hit on Friday. Deutsche Bank and BNP Paribas were among the worst affected, both closing more than 4.5 percent lower. Italian and Swiss lenders, including Credit Suisse and Intesa Sanpaolo, also closed sharply in negative territory.
Auto stocks were also lower after the Fed's dovish tone. The worst hit included France's Renault, down 4.2 percent, and German carmaker Daimler, down 4.3 percent.
Gold rose to a near three-week high, gaining around 0.5 percent to trade at $1,137, boosting mining stocks.
Asian shares were mixed on Friday, but Japan's Nikkei 225 tumbled on the back of renewed strength in the yen.
The Nikkei index on the Tokyo Stock Exchange and the broader Topix index were among the hardest-hit in Asia, down 2 percent ahead of an extended weekend. Markets in Japan will be shuttered until next Wednesday.