European stock markets closed sharply lower on Monday. London's Financial Times 100 index lost 3.6 percent to end at 5,103. The CAC-40 in Paris fell 4.7 percent to finish at 3,000 and the DAX in Frankfurt plunged 5.3 percent to hit 5,246.
Earlier in Asia, Tokyo's Nikkei index dropped 1.9 percent to close at 8,784. Hong Kong's Hang Seng index lost nearly three percent to end at 19,616.
U.S. financial markets were closed for a holiday on Monday.
The price of gold rose more than $17 to trade at $1,900.05 an ounce.
The dollar was higher against the yen and the euro.