Globally shares have dropped sharply for the second day as fears about the eurozone debt crisis intensified.
New York's Dow Jones index was trading more than 3% down, while Frankfurt's Dax and London's FTSE 100 indexes closed almost 3.5% lower.
European Commission President Jose Manuel Barroso's warning that the sovereign debt crisis is spreading spooked the markets.
On the side, the price of gold hit a new record in history high of $1,677 an ounce.
More weak jobs data from the US also raised concerns about the strength of the economic recovery there.
Banks were hit particularly hard, with Lloyds Banking Group down 9.9% and Royal Bank of Scotland falling 7% in London, Societe Generale losing 6.9% in Paris and Commerzbank dropping 6.8% in Frankfurt.
Miners also suffered, with Vedanta Resources slumping 9.5% and Xstrata and Eurasian Natural Resources falling more than 8% in London.
The oil price also dowm on fears that a weaker global recovery would hit demand. US light crude reduced by more than $4 a barrel, or almost 5%, to $87.63. London Brent fell by almost $5 a barrel to $108.85.
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