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London's FTSE 100 lost 50 points to close 1 percent lower at 4,848.70, having earlier fallen over 2.2 percent to 4,772.2 as banks and drugs pulled blue chips into the red. France's CAC 40 closed 1.13 percent lower at 3,970.18 after recovering from an earlier session low of 3,891.32.
In late trading, Frankfurt's electronically traded Xetra Dax lost 1.06 percent to 4,189.85.
Britain's leading shares fell Tuesday but bounced off session lows after Wall Street put the brakes on a slide and turned higher.
"Markets in Europe moved down after a turnaround in the U.S. markets. The good news was that the Bank of England cut interest rates at the same time other European bourses and the Bank of Japan joined in," said Khuram Chaudhry, equity strategist with Merrill Lynch in London.
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