Barclays Plc, the U.K.'s third-biggest bank, dropped 6.3 percent and Australia's Macquarie Group Ltd. retreated 4.5 percent. Vedanta Resources Plc, India's largest zinc producer, and Rio Tinto Group slid more than 6 percent on lower metals prices. Marks & Spencer Group Plc sank 4.7 percent after Deutsche Bank AG cut its recommendation on shares of the U.K.'s biggest clothing retailer.
Europe's Dow Jones Stoxx 600 Index slipped for a second day, falling 2.3 percent to 266.05 as of 12:21 a.m. in London. The gauge has erased more than half of an 8.3 percent rally on Sept. 19, when the U.S. government announced plans to stem credit- related losses. The MSCI Asia Pacific Index retreated 0.4 percent, snapping a two-day advance. Futures on the Standard & Poor's 500 Index decreased 0.4 percent.
The Stoxx 600 is down 27 percent this year on concern more than $500 billion in credit losses and writedowns at financial firms worldwide and a slowing global economy will hurt profits. Earnings for companies in the measure are expected to fall 3.3 percent this year, according to data compiled by Bloomberg. That compares with analysts' estimates for an 11 percent increase at the start of the year.
National benchmark indexes decreased in all 18 western European markets. The U.K.'s FTSE 100 lost 2.8 percent as British Airways Plc and Man Group Plc declined. France's CAC 40 dropped 2 percent and Germany's DAX retreated 0.9 percent.
Australian stocks fell for the first time in three days. S&P/ASX 200 Index dropped 97 points, or 1.9 percent, to 4,923.50 at the close of trading in Sydney, ending a two-day, 9 percent jump.
China's CSI 300 Index slid 3.8 percent, the most in the region. China Vanke Co., the nation's largest publicly traded developer, led declines after the proportion of households planning to buy a home dropped to the lowest level on record.
India's benchmark stock index fell for a second day after oil prices jumped by a record and concern grew the U.S. financial-industry bailout won't prevent a global recession. The Bombay Stock Exchange's Sensitive Index, or Sensex, slid 372.89, or 2.7 percent, to 13,622.07 as of 2:47 p.m. local time. The BSE 200 Index fell 2.2 percent to 1,653.10.
Russia's benchmark Micex Index dropped 4 percent to 1,061.14, after a record 29 percent two-day gain for the stocks.