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Investor sentiment was also weighed down by faltering Chinese factory activity, which slowed to a 19-month low in February.
In initial deals, London's benchmark FTSE 100 index of top blue-chip companies dropped 0.5 percent to 7,247.52 points, compared with the closing level on Tuesday.
In the eurozone, Frankfurt's DAX 30 also lost 0.5 percent to 12,427.46 points and the Paris CAC 40 shed 0.4 percent to 5,321.50.
Asian equities sank Wednesday as an upbeat assessment of the US economy by new Federal Reserve boss Jerome Powell fanned fresh fears of a sharp rise in interest rates. In his closely watch.