Britain's FTSE fell, led down by energy shares as BP dropped again on fresh Gulf of Mexico oil slick worries and banks which were hit by euro zone debt concerns and the threat of punitive taxes.
By the close the FTSE 100 was off 41 points (0.8%) at 5,028 after a choppy session, having recovered from an intraday low of 4,985.
In Paris, the CAC closed down 33 points (1%) to 3,380, while Germany's Dax closed down 36 points (0.6%) to 5,868.
The ISEQ index of Irish shares closed down 58 points (2%) to close at 2,925. with food group Aryzta jumping more than 7.8% to €28.86 after a trading update and two big acquisitions.
Bank of Ireland finished flat at 76 cent after earlier gaining as much as 5.8%, but the other banks fell heavily. AIB dropped 8.3% to 88 cent and Irish Life & Permanent lost almost 10.2% to €1.66.
In New York, the Dow Jones was up 69 points (0.7%) to 9,885 shortly after 5pm. The Nasdaq was 0.3% lower to 2,167 points.
Japanese shares ended mixed as cautious investors sought bargains following heavy falls the previous day. Tokyo's Nikkei ended up 0.2% at 9,538.
Hong Kong stocks closed slightly higher, with the Hang Seng rising 0.6% to 19,487.
