In London, the FTSE 100 index declined 2.1%, while the Euronext 100 dropped 2.7%.
This came as Asian markets plunged, with Japan’s Nikkei 225 falling 12.4%, or 4,451 points, in the largest point drop in history.
It comes as dismal job data from the United States on Friday raised fears about the world’s largest economy.
Meanwhile, the yen has strengthened against the US dollar since the Bank of Japan increased interest rates last week, making Tokyo stocks more expensive for overseas investors.
Stock markets in Taiwan, South Korea, India, Australia, Hong Kong, and Shanghai all fell.
Weaker-than-expected economic statistics in the United States have fueled speculation that the economy is faltering.
At the same time, unlike other central banks like the Bank of England, the US Federal Reserve did not decrease interest rates last week.
There has also been worry that shares in technology businesses, particularly those focused on artificial intelligence (AI), have been overvalued and are now in difficulty.
Intel reported significant layoffs last week, as well as negative financial results, and there is suspicion that its competitor, Nvidia, which manufactures AI processors, could postpone its upcoming rollout.
The US Nasdaq index, which contains a large number of technology firms, achieved a record high last month but fell by roughly 10% last week.
