Led by a nearly 10 percent crash in Australia, stocks around the world show investors still fear for the global economy.
European markets opened more than 4 percent lower on Monday, then fell more than 8 percent as the morning continued. France’s main stock index briefly fell 10 percent.
Global stocks tumbled on Monday despite the U.S. Federal Reserve’s emergency measures to address the economic slowdown.
European markets are still deep in the red as fears of a global recession swirl through the City.
The FTSE 100 is down 329 points, or 6%, at 5,034 - on track for its lowest close since 2011. Holiday and airline stocks are still being routed - with TUI down 32%, IAG down 22% and easyJet down 23%.
The Stoxx 600, which covers European companies, is down 8%, at its lowest since June 2013.
David Madden of CMC Markets UK says investors are “blindly” selling, with last night’s emergency action from global central bankers causing alarm.
The glum opening followed a difficult day in Asian markets, where sentiment soured throughout the day. Australia led the region’s drop with a 9.7 percent plunge in the S&P/ASX 200 stock index, leaving it down about 30 percent from its high last month.
The Fed cut interest rates to near zero and said it would buy hundreds of billions of dollars in government debt, moves that are reminiscent of its actions during the financial crisis in 2008.