Last Updated at 08:00 ET
| Dow Jones | 15112.19 | Down | -206.04 | -1.35% |
| Nasdaq | 3443.20 | Down | -38.98 | -1.12% |
| S&P 500 | 1628.93 | Down | -22.88 | -1.39% |
| FTSE 100 | 6204.77 | Down | -144.05 | -2.27% |
| Dax | 7989.92 | Down | -207.16 | -2.53% |
| BBC Global 30 | 6695.33 | Down | -52.75 | -0.78% |
European stock markets have fallen sharply after the US central bank signalled it could begin to scale back its economic stimulus programme later this year.
Markets were also hit by figures showing a further weakening in China's manufacturing sector.
In late morning trade, the UK's FTSE 100 index, Germany's Dax and France's Cac 40 index were all down 2.4%.
Earlier in Asia, Tokyo's Nikkei 225 had finishing 1.7% lower.
On Wednesday, Federal Reserve chairman Ben Bernanke said that if the central bank's forecasts were correct, it could begin slowing asset purchases by the end of 2013 and wind them down completely by the middle of 2014.
However, he emphasised that the programme was tied to how well the US economy was doing.
His comments spooked the US markets, with the Dow Jones Industrial Average falling more than 200 points, or 1%, to 15,112.19.
The S&P 500 closed 1.4% lower at 1,628.93, while the Nasdaq lost 1.12% to finish at 3,443.2.
Gold prices also suffered on Thursday, falling to two-and-a-half year lows, largely thanks to a strengthening dollar, as investors speculated that US interest rates would have to rise.
The dollar rose by 0.76% against the euro and was up 1.39% against the yen.
Source: BBC News - Business http://www.bbc.co.uk/news/business-22984168#sa-ns_mchannel=rss&ns_source=PublicRSS20-sa
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