Major stock markets outside the United States ended on Monday.
Royal & Sun Alliance was among a handful of strong stocks, adding 3.9 percent after the British insurer completed the disposal of its troubled US operation, while banking giant HSBC rose 1.1 percent after reporting 2006 earnings.
But that was not enough to turn around sentiment, bedevilled by ongoing global economic and foreign exchange worries, and the FTSEurofirst 300 index of top European shares closed 1.2 percent lower at 1,446.30 points - bringing the market's slide over the last five sessions to 6.7 percent.
The benchmark S&P/ASX 200 index slipped 132.4 points to a seven-week closing low of 5,653.6, after falling 4.1 percent last week.
The All Gold index closed at 2,683.77 points, down 68.16 or 2.48 percent, while the Industrial index closed at 17,700.86 points, down 364.41 or 2.02 percent.