U.K. stocks moved sharply lower on Thursday after the U.S. Federal Reserve signaled an interest-rate increase in June is still on the table if the economy continues to improve. A crashed EgyptAir plane also hurt sentiment, dragging shares in travel operators and airlines lower.

U.S. stocks recovered some of the early losses but ended lower Thursday on mounting fears that the Federal Reserve's next interest-rate hike could come as early as June. Thursday's moves follow the release of minutes from the Fed's latest meeting, which emphasized the central bank's intent to raise interest rates soon, provided the U.S. economy continues to strengthen.

Asian stocks swung between gains and losses as investors assess what a U.S. interest-rate increase as soon as next month will mean for global economic growth. Minutes of the Federal Reserve's April meeting released this week indicated policy makers may be readying to raise U.S. interest rates as soon as next month. That sent the odds for a June increase to as high as 33 percent from 4 percent on Monday, though has since eased to a 28 percent chance. Traders see a higher probability for an increase by September, with the likelihood seen at 58 percent.

Based on MarketWatch materials