Negative trade came as the euro dropped sharply against the dollar, following reports that the European Central Bank (ECB) is concerned over the impact of a weak Turkish lira on European lenders.
TheFinancial Times said that Spain's BBVA, Italy's UniCredit, and France's BNP Paribas could be particularly impacted by the ongoing depreciation of the lira.
On the earnings front, Novozymes shares were down over 2 percent after the biotech firm missed expectations with its second-quarter results. Meanwhile, budget carrier Ryanair is facing flight cancellations across Europe as pilots strike in Ireland, Germany, Belgium, Sweden and the Netherlands. Shares were down nearly 4 percent mid-afternoon.
Elsewhere, Sports Direct has bought all the U.K. stores, stock and brand of House of Fraser. The deal cost $115 million. Shares of Sports Direct fell slightly on the news.
U.S. stocks hit by lira drop
The Dow Jones Industrial Average dropped more than 100 points as Intel declined 3.3 percent. The S&P 500 fell 0.6 percent as financials and tech lagged. The Nasdaq Composite also pulled back 0.6 percent.
Traders have remained on edge after China matched the most recent round of U.S. tariffs with 25 percent levies of its own, targeting $16 billion worth of American goods. Meanwhile, Japanese gross domestic product (GDP) figures showed better-than-expected growth in the second quarter, aided by strong household and business spending.
Gross domestic product (GDP) figures out Friday morning showed the U.K. economy growing 0.4 percent in the second-quarter of the year.
In other data, the International Energy Agency's monthly oil market report said Friday that a U.S. plan to impose targeted crude sanctions against Iran could significantly impact global supply and exhaust the world's spare oil capacity cushion.