European stocks closed sharply lower Tuesday, logging its worst three-day decline in nearly three months as the euro hit a roughly nine-month high against the U.S. dollar. Selling in bank shares following poor financial results in the sector also weighed.

U.S. stocks fell to their lowest level in three weeks on Tuesday, as weaker-than-expected manufacturing data in China revived worries about global growth and sent investors scurrying out of the perceived risk of equities.

Most shares in Asia were back in the red Wednesday with Australia slipping below breaking even for the year amid a renewed fall in oil prices and a nearly 10% plunge in shares of Anglo-Australian BHP Billiton Ltd.

Based on MarketWatch materials