Across the board, European bourses saw red by the close with the U.K.'s FTSE 100 off 0.62 percent, the French CAC 40 down 0.42 percent and the German DAX slipping 0.54 percent. In peripheral markets, the Spanish IBEX and Italy's FTSE MIB, each posted declines of 1 percent or more.
Looking at individual stocks, Swiss asset management giant GAM was the biggest loser on the pan-European benchmark after Credit Suisse halved its price target for the stock. On Tuesday, GAM said it would next month begin the liquidation of the absolute return funds it froze in July after suspending Investment Director Tim Haywood. Shares slumped 10.83 percent.
Traders have also been keeping abreast of fresh corporate earnings releases. Swedish radiosurgery firm Elekta was among the worst performers in Europe, off 10.5 percent, after posting an unexpected profit miss. The firm's first-quarter profit fell to 238 million Swedish krona ($26 million) from $281 million.
And shares of French property investment group Unibail-Rodamco-Westfield fell after reporting first-half results. The firm, which recently finalized the acquisition of Westfield Corporation, posted a jump in profits, but shares were under pressure following a price target cut from Morgan Stanley. The stock fell down more than 4 percent.