London's benchmark FTSE 100 index shed 1.47 percent to 5,634.59 points, Frankfurt's DAX 30 lost 1.16 percent to 6,717.84 points and in Paris the CAC 40 also fell 1.16 percent to 3,473.36.

Asian markets closed sharply lower on Wednesday as traders switched their attention from the US debt deal to fears of fresh sovereign debt contagion in the eurozone as the economic outlook dampened sentiment.

Copyright AFP (Agence France-Presse), 2011