The pan-European STOXX 600 extended losses to provisionally close down 0.98 percent, with almost all sectors ending the day in negative territory.
Insurance finished the session down 1.36 percent amid earnings news. Hannover Rueck slipped to the bottom of the sector after posting full-year results. Shares of the German reinsurer closed down 4.2 percent. Telecoms was the worst performing sector, closing down 1.6 percent.
Basic resources held strong, making it the only sector to eke out gains, as metal prices rose during trade. The same could not be said for oil prices, which fell into the red during afternoon trade.
Looking at individual stocks, E.ON jumped toward the top of the European benchmark after the company said it would submit a 5.2 billion euro ($6.4 billion) voluntary takeover offer for minority shareholders in Innogy. Shares of E.ON popped up 3.87 percent.
France's Iliad slumped to the bottom of the index despite the company reporting higher annual sales and profits during 2017. The telecoms group also said the firm was in the final phase of preparing its Italy launch before the summer, Reuters reported. Its shares closed down 10 percent.
Stateside, markets were on edge in afternoon trade, following news that Tillerson had been ousted as secretary of state Tuesday, marking the end to a tumultuous tenure as America's top diplomat. Trump plans to appoint CIA Director Mike Pompeo to replace the former Exxon Mobil chief executive, with Deputy CIA Director Gina Haspel poised to run the spy agency.
Meanwhile, a closely-tracked measure of U.S. consumer price inflation rose in line with expectations in February. The core consumer price index (CPI) showed prices were 1.8 percent higher last month when compared to the same period last year. The data is seen as likely to reaffirm the Federal Reserve's case for three interest rate hikes in 2018. On Wall Street, markets came under pressure around Europe's market close.
The U.K.'s Office for Budget Responsibility published its spring economic and fiscal outlook on Tuesday. Finance Minister Philip Hammond stated that the U.K. economy would grow slightly more quickly than previously expected during the course of 2018. Growth forecasts for 2019 and 2020 were kept unchanged at 1.3 percent