Losses after US manufacturing data
An early advance in European stocks proved fragile, turning to losses after a report showed US manufacturing deteriorated in September.
Signs of stabilization in China's factory data had boosted investor optimism earlier yesterday, with rallies in miners and energy shares sending the Stoxx Europe 600 Index up as much as 1.5pc.
The gains evaporated after the Institute for Supply Management's manufacturing index missed estimates, falling for a third month.
Europe's benchmark gauge lost 0.4 percent to 346.23 at the close of trading. Concern about a slowdown in China and uncertainty over the timing of a Federal Reserve rate increase sent the Stoxx 600 to its worst quarterly drop in four years.
By the close in Dublin, the ISEQ Overall Index was down 0.55pc or 34.18 points to end the trading day at 6,133.23.
The leaders on the Dublin market included speciality baker Aryzta, which increased 5.7pc to €40.33, while transport group Irish Continental rose 0.9pc to €4.40.
On the other side of the board, the laggards included packaging giant Smurfit Kappa, which dropped 2.7pc to €23.36, while Kerry Group slipped 1.3pc to €66.26.
"We mustn't be surprised to see swings like we see, even on an intraday basis," said Pierre Mouton, a fund manager at Notz, Stucki & Cie in Geneva. "The situation remains unclear. Is China slowing, stabilising or crashing? Will Janet raise rates before December, in December, or later in 2016? Each time we'll have nice rebounds there's a chance we have profit taking afterwards."
Traders are pricing in a 43pc probability of a rise in December and almost even odds of a January increase. A US government report on payrolls today may offer further indications on whether the economy is strong enough to withstand higher borrowing costs.
Telecommunications companies fell the most among Stoxx 600 groups.