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Stock markets slumped Tuesday on geopolitical risks stretching from US tensions with Russia and Saudi Arabia to trade issues and Italy's budget stand-off with the European Union.
European stocks picked up where Asia left off, with Frankfurt losing over two percent after Hong Kong closed down more than three percent.
Wall Street came off to a much lower start, depressed by international tensions but also by a weaker-than-expected earnings forecast from Dow member Caterpillar.
"US stocks are floundering in early action," said Charles Schwab analysts, "exacerbating already skittish global sentiment".
The dollar was down versus the euro, yen and pound.
Frankfurt was dragged down by a plunge in the share price of chemicals and pharmaceuticals giant Bayer after a San Francisco judge on Monday upheld a jury verdict that found Bayer-owned Monsanto liable for not warning a groundskeeper that its weed killer product Roundup might cause cancer.
Judge Suzanne Bolanos denied Monsanto's request for a new trial but cut the $289m damages award to $78m to comply with the law regarding how punitive damages awards must be calculated.
Bayer said it would appeal the latest ruling.
There is growing unease meanwhile about Italy's row with the EU over its purse-busting budget, which Brussels said breaks the bloc's financial rules.
The populist government in Rome has refused to back down and cut its spending promises despite warnings about the country's economic outlook.
Pressure is also growing on Saudi Arabia after it admitted that a journalist critical of Riyadh had been killed at its Istanbul consulate.
Turkish President Recep Tayyip Erdogan on Tuesday said that the "savage murder" of journalist Jamal Khashoggi at the Saudi consulate in Istanbul was meticulously planned, demanding that all those linked to the killing face punishment.
Oil prices slid Tuesday as the market discounted concerns about potential supply disruptions in the Middle East.
Saudi Arabia said Monday it had no plans to repeat its harsh 1973 oil embargo, even as relations with the West sour following the death of Khashoggi.
Sharp losses Tuesday in Asia brought an end to a rally in previous sessions fuelled by China's top brass issuing coordinated statements of support for the country's markets and officials unveiling tax cut plans.
Elsewhere, nerves have been tested by US President Donald Trump's warning that he will pull out of a nuclear treaty with Russia and bolster America's arsenal.
Traders are also turning their attention to next month's US midterm elections, which could turn control of Congress over to the Democrats.
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