Stock indices dropped more than 2% in the morning trading session, following Asian stock indices. The Japanese Nikkei stock index fell almost 4%, while China's Shanghai Composite declined more than 8%.

Concerns over a slowdown in the Chinese economy weighed on markets.

China allowed pension funds to invest in domestic stocks. Pension funds are now able to invest up to 30% of their net assets in domestic stocks.

China hopes with this decision to boost the liquidity on the stock market and to stop a massive selloff.

The Confederation of British Industry (CBI) released its economic growth forecasts for the U.K. The CBI expects Britain's economy to expand 2.6% this year, up from the previous estimate of 2.4%, and 2.8% in 2016, up from the previous estimate of 2.5%.

The upgrade was driven by higher increase in in productivity and household spending.

Current figures:

Name Price Change Change %

FTSE 100 6,045.23 -142.42 -2.30 %

DAX 9,882.13 -242.39 -2.39 %

CAC 40 4,525.13 -105.86 -2.29 %