Europe ends in the red as oil posts sharp declines

European stocks finished lower on Tuesday as sentiment was hit by a sharp fall in the oil price, while investors speculated over when the U.S. Federal Reserve would raise interest rates.

After a choppy trading session, the pan-European STOXX 600 finished down 1.03 percent provisionally, having extended losses after U.S. stock indexes fell in early trade.

The U.K.'s FTSE 100 fell 0.53 percent, while the German DAX slipped 0.43 percent. France's CAC fell further, ending 1.19 percent down.

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IBEX 35
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Oil prices were sharply lower on Tuesday after the International Energy Agency warned in its latest report that markets would have to wait "a while longer" for the oil market to rebalance.

Brent crude futures posted sharp declines by Europe's stock market close, hovering at $47.22, while U.S. WTI fell even further, trading at $44.98.

Consequently, European commodity stocks sectors — miners and oil — sank 2.8 percent each, with Anglo American and Tullow Oil ending over 4 percent down each.

In Asia, markets ended mixed despite slightly better-than-expected data from China.

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In recent sessions, traders have been closely following comments by U.S. Federal Reserve officials for clues on the timing of a rate hike in the U.S.

Markets will now be on the look out for U.S. retail sales data due out on Thursday which will be the most important data the Fed will see before it meets next week. Goldman Sachs trimmed the odds of the Fed raising interest rates when it meets, noting the absence of a clear indication that the central bank's rate-setting group was set to tighten policy.

Ocado shares tank 14%

In individual stock news, Ocado shares tumbled 13.66 percent after it warned it was seeing sustained margin pressure, which is unlikely to go in the near-term.

France's Air Liquide launched a 3.3 billion euros ($3.71 billion) capital raise to help it finance the acquisition of Airgas, sending shares to close up 4.8 percent.

Shares of HSBC ended 1.1 percent down after Citigroup downgraded its outlook on the stock. Meanwhile, Partners Group shot up 8.4 percent after Helvea Baader Bank raised its price target for the stock. This comes after the investment management firm reported higher interim profits.

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