U.S. stocks declined sharply in Tuesday's trading. The Dow Jones Industrial Average dropped 1.7 percent to close at 11,707. The S&P 500 fell 2 percent to hit 1,229, while the NASDAQ composite index slid 2.3 percent to finish at 2,638.

European stock markets were down by the close of Tuesday's trading. London's Financial Times 100 index was down four-tenths of a percent to end at 5,526. The CAC-40 index in Paris fell 1.4 percent to end at 3,174, while the DAX index in Frankfurt fell one-tenth of a percent to finish at 6,047.

Earlier in Asia, Tokyo's Nikkei index lost nine-tenths of a percent to close at 8,762. Hong Kong's Hang Seng index rose 1.1 percent to end at 18,968.

The price of gold surged almost $50 to trade at $1,703.10 per ounce. That is the highest level for gold in a month.

The dollar fell against the yen but gained value compared to the euro.