European markets follow Asia slump

(CNN) - European stock markets quickly slipped into negative territory Thursday following similar tumbles across Asia and in the United States.

Europe's major markets - London, Paris and Frankfurt - were all down 2 to 3 percent. But the selloff was more brutal in Asian and Pacific markets, where Tokyo's Nikkei index shed 6.9 percent on Thursday.

The Japanese market slumped as the country's Finance Ministry announced a 63.9 billion yen ($663 million) trade deficit in October - the first for the month in 28 years - after a slowing global economy cut into the nation's exports. Seoul's KOSPI index dropped 6.7 percent on the day, while Australia's All Ordinaries index closed 4.3 percent lower and Hong Kong's Hang Seng index fell 4.3 percent.

On Wednesday, Wall Street finished at its lowest point since Spring 2003 amid ongoing investor worries about the economy and the future of the auto industry. The Dow Jones industrial average fell 5.1 percent, closing below 8,000 for the first time since March 2003.