Global sentiment turned sour on Thursday as major equity and fixed income markets around the world saw a strong selloff amid rising volatility.
European indexes bore the brunt of the selling early on Thursday, with the French CAC index posting losses of over 2 percent at one stage, with the German DAX and the U.K.'s FTSE not far behind. This came after a gloomy session in Asia, where China's Shanghai Composite index chalked up a third straight day of steep declines, diving 2.8 percent.
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U.S. stock index futures indicated a sharply lower open on Friday, with Dow futures indicated a fall of over 100 points at the open. On Wednesday, major benchmarks in the U.S. closed lower after reversing a positive open.