European stocks ended with sharp losses on Thursday, as a rally by the euro reversed earlier optimism, hitting industrials, utilities and consumer shares. Even as shares of European banks and basic materials companies rose, boosted by the outcome of U.S. bank stress tests and a weaker U.S. dollar, respectively, key regional benchmarks failed to follow them higher.

U.S. stocks tumbled Thursday, with the S&P 500 and Dow industrials logging their worst one-day declines since May as the technology sector resumed its selloff, overshadowing advances in financials.

The wild ride for global stock markets continued Friday, with Asian equities declining following selling in the U.S. and Europe. The drop in Asia reversed yesterday's gains, which followed declines earlier in the week.