Major stock markets outside the United States ended on Tuesday.
Mining stocks, which pared some of their recent gains, and banks were the largest drags on the European equity market, which came under sustained pressure following data showing troubling increases in wholesale inflation in the United States and Germany, where investor expectations for the economy deteriorated by more than expected in May.
Crude oil hitting a new high above $129 a barrel fed by bullish investment bank forecasts only added to the concern brewing among investors that persistent price pressures will severely curb the ability of central banks to loosen monetary policy to protect economic growth.
The FTSEurofirst 300 index of top European shares ended 2 percent down at 1,350.54, making this its worst one-day fall since March 17, when the index hit a 2-1/2 year low.