European equities closed in the red on Tuesday, as investors's sentiment turned negative despite recoveries in mining, autos and oil prices.
The pan-European STOXX 600 failed to hold onto any earlier gains, ending 0.55 percent lower.
London's FTSE 100 closed down 0.8 percent, despite the bounce back from mining companies.
Outside of Europe, markets faced choppy sessions of trade, with U.S. stocks trading slightly higher Tuesday, attempting to stabilize after a sharp sell-off. However, in Asia, shares plummeted on Tuesday's session, with commodity plays among the biggest casualties.
London-listed commodity firm Glencore staged a rebound on Tuesday, climbing as much as 18 percent during trade after a note from Citi that the selloff has been "overdone." The broker maintained its "buy" rating for Glencore. Despite stocks plummeting 29 percent on Monday, the stock closed at the top of the Stoxx 600 Tuesday, up 16.9 percent.
Investors in Europe were also focused on developments in the Volkswagen emissions scandal on Tuesday.
could now help U.S. investigators build a case against it for deceiving the government about their emissions, lawyers said, Reuters reported late Monday.The German carmaker was also cut from the Dow Jones Sustainability Index. Shares in Volkswagen closed down 4.1 percent.
Other autos however made a comeback, with Peugeot Citroen 1.9 percent up, despite Goldman Sachs cutting its outlook on the stock from "conviction buy" to "buy". Renault also closed in positive territory.
In other company news, British heating and plumbing supplier Wolseley lowered its outlook for revenue growth and announced it would buy back £300 million ($455.2 million) worth of shares, sending shares to sink 12.5 percent lower.
On the oil front, Tullow Oil was a top performer, buoyed by oil prices rebounding on Tuesday. Prices rose following evidence of tightening supplies in the U.S. outweighing China concerns. Brent crude last stood at $48.34, while WTI was at $45.35.
On the data front, U.K. mortgage lending increased by the greatest amount since 2008 with the number of mortgage approvals in August hitting their highest level since January 2014, according to the Bank of England. Lending to U.K. businesses also rose in August, in further signs of strength in the British economy.