European stock markets were sharply lower in midday trading Monday.

London's Financial Times 100 index was down 2.5 percent to 5,163. The CAC-40 in Paris plunged 4 percent to 3.024. And the DAX in Frankfurt lost 3.9 percent to hit 5,325.

U.S. markets are closed for the Labor Day holiday.

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.

Gold was trading at $1891.92 an ounce,

The dollar was mixed against other major currencies.