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European markets sharply lower as global sentiment worsens

European stocks slid into negative territory on Tuesday amid gloomy sentiment in global markets.

The pan-European Stoxx 600 dropped 1.1% in early trade, with basic resources shedding 1.8% to lead losses as all sectors and major bourses began the session in the red.

The negative start for Europe on Tuesday comes after a choppy period for global markets.

On Monday, European stocks were muted during the trading session, searching for direction after a volatile week. Meanwhile, U.S. stocks fell on Monday as investors looked at surging oil prices, economic worries and major earnings results ahead.

The Dow Jones Industrial Average shed 250.19 points, or 0.7%, to close at 34,496.06. The S&P 500 ticked lower by 0.7% to 4,361.19. The Nasdaq Composite dipped 0.6% to 14,486.20.

U.S. stock futures declined in early premarket trading on Tuesday.

Investors are bracing for a slew of U.S. earnings, with major banks revealing third-quarter results this week; JPMorgan ChaseGoldman SachsBank of AmericaMorgan StanleyWells Fargo and Citigroup are all due to report, starting Wednesday.

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Overnight, shares in Asia-Pacific tumbled on Tuesday, with major indexes from Japan to Hong Kong falling at least 1%.

Investors in the region were keeping a close eye on oil prices, which slipped in Asia trading hours, taking a pause following a recent surge above $80. International benchmark Brent crude futures dipped 0.55% to $83.19 per barrel, while U.S. crude futures shed 0.56% to $80.07 per barrel.

Earnings updates come on Tuesday from luxury goods giant LVMH and Swiss fragrance maker Givaudan. On the economic data front, releases included U.K. unemployment figures for August and Germany’s latest ZEW survey of economic sentiment.

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– CNBC’s Eustance Huang and Yun Li contributed to this market report.

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