Stock markets have dropped sharply as weak US, jobs data added to threats of a new global economic downturn.
Wall Street was most effected, with the Dow Jones, S&P 500, and Nasdaq indexes down more than 2%.
Earlier, European stocks closed down as the Department of Labor said the US economy added no net jobs in August.
The jobs data follows production sector surveys released on Thursday which showed activity at factories worldwide fallen last month.
London's FTSE 100 ended 2.3% drop, and Frankfurt's Dax was 3.36% down. In France and Spain, markets were more than 3% fall, and Milan's exchange sank almost 4%.
The Dow dropped 2.2%, and the S&P and Nasdaq were 2.5% fall.
The London market was not helped by other data on Friday that pointed to a further slowdown in the construction industry in the UK.
The slump start late trading in the US on Thursday, where the Dow Jones ended the day 1% down, before continuing in Asia on Friday morning, where Tokyo's Nikkei drop index 1.2%, and Hong Kong's Hang Seng drop index 1.8%.
Bank sector in Europe was worst effected.
In the UK, Barclays share drop 8.4% and Lloyds 7.1%. In Germany, Deutsche Bank and Commerzbank were fallen 6% and 5.5% respectively. In France, Credit Agricole dropped 7.4% and Societe Generale was off 6.6%.
In the US, where it has emerged that the banks will be sued by a US government home loans agency, shares in Bank of America were hammered, falling 8% at the open, while Citibank share dr0ped 5.2%.
