European stocks closed at their lowest since May 2003 on Wednesday, led by banks and commodities.
Shares in BASF were down 13.7% after the world's top chemicals maker by revenue cut its 2008 profit outlook for the second time in two months.
Drugmaker AstraZeneca was down 11% after it said full-year earnings would be down.
Shares in energy companies were down: BP, Royal Dutch Shell and BG Group all dropped between 3.7% - 5.9% as crude oil fell about 1%.
The FTSEurofirst 300 index of top European shares closed 4% lower at 811.99 points - its lowest close since May 2003. The index is down more than 45% this year.
Banks were the worst hit: BNP Paribas shed 11.2%, HSBC fell by 9.1%, Barclays was down 13.3% and Societe Generale was down 7.8%.
However, HBOS gained by 2% as Lloyds TSB investors were expected to approve its takeover of HBOS and a government rescue plan.
In other gloomy economic data: US consumer prices dropped at the fastest rate on record in October, new home construction touched a record low and loans for purchases of single-family homes fell to their lowest level in nearly eight years.
Across Europe: the DAX index in Frankfurt ended at 4,354.09 points, down 225.38 or 4.92%.
In Paris, the CAC-40 index closed at 3,087.89 points, down 129.51 or 4.03%. The Swiss market index closed at 5,524.06 points, down 151.52 or 2.67%.
In Britain, the FTSE 100 closed down 202.87 points, 4.8%, at 4,005.68. The index has lost 38% to date this year.
British factory orders fell sharply in November and manufacturers gave their gloomiest projections about future output in nearly 30 years, according to a monthly survey from the Confederation of British Industry.
Other markets
The Nikkei 225 stock average lost 55.19 points, or 0.7%, to close at 8,273.22. The broader Topix index lost 1% to 827.43.
The MSCI index of Asia-Pacific stocks outside of Japan fell 0.3%. The South Korean won hit a three-week low and the KOSPI index shed 1.9%.
In Australia, the S&P/ASX 200 shed 0.7% on a drop in non-financial shares after authorities lifted a ban on short selling. The All Ordinaries index shed 29.9 points, or 0.85%.
In New Zealand, the NZX 50 closed down 8 points to 2706 on Wednesday, on turnover of $67 million.
Telecom closed up 1 cent to $2.35, while Contact Energy fell 5c to $7.15 and Fletcher Building lost 2c to $5.70. Air New Zealand lost 2c to 89c cents after announcing it intends to cut 200 jobs.
In the currency markets: at 8.15am on Thursday, the New Zealand dollar was trading at US54.86 cents, 84.82 Australian cents, 36.49 pence, 52.72 yen and 0.4371 euro. The Trade Weighted Index was at 56.14.
