European markets closed lower on Wednesday as traders grappled with fears of higher interest rates and a looming economic downturn.
European markets
The pan-European Stoxx 600 provisionally closed down by 1%. Oil and gas stocks fell 2.7% to lead losses as most sectors and major bourses dipped into negative territory.
Travel and leisure stocks bucked the downward trend, closing up 0.6%.
Market jitters have been prevalent since Friday after hawkish remarks from Federal Reserve Chair Jerome Powell. On Tuesday, New York Fed President John Williams called for a "somewhat restrictive policy to slow demand."
Shares in Asia-Pacific closed mostly lower overnight following a negative lead from Wall Street, and as investors digested China's factory activity data. Meanwhile, U.S. stocks traded mixed at the start of Wednesday's session.