U.S. stock markets were sharply lower at the close of trading. The Dow Jones Industrial Average lost nearly 2.2 percent to end at 10,913. The S&P 500 is off 2.5 percent to finish at 1,131. The NASDAQ slid 2.6 percent to hit 2,415.

European stock markets closed sharply lower. London's Financial Times 100 index ended down 1.3 percent to finish at 5,128. The CAC-40 in Paris closed off 1.5 percent , at 2,982. The DAX in Frankfurt slid 2.4 percent to end at 5,502.

In Asia, Tokyo's Nikkei index was virtually unchanged, to close at 8,700.

Hong Kong's Hang Seng index dropped 2.3 percent , to end at 17,592.

The price of gold rose more than $7 to trade at $1,622.19 an ounce.

The dollar is up against the yen and the euro.