London's benchmark FTSE 100 index slid almost 1.0 percent to 5,909.23 points compared with the close on Wednesday, when European stocks had enjoyed a brief rebound following sharp losses early in the week.
Frankfurt's DAX 30 index opened Thursday with a hefty 1.3 percent drop to 9,480.43 points. The Paris CAC 40 shed also 1.3 percent in value to stand at 4,116.50.
Tokyo dived 2.1 percent by the close after Federal Reserve boss Janet Yellen sounded a warning over a possible British exit from the EU while the yen, seen as a haven investment, soared to a 21-month dollar high as the Bank of Japan failed to pump up its stimulus.
The Fed on Wednesday lowered its growth forecasts for this year and the following two, and flagged interest rates rises to be lower and slower, highlighting increasing concern about the US and wider global economic outlook.
Thursday sees the Bank of England provide the outcome of its latest monthly policy meeting, with analysts widely expecting it to make no changes to its 0.5-percent interest rate and amount of stimulus pumping around the economy.