//
The FTSEurofirst had decreased by 1.5 per cent to 862.69 points at 11:43 BST, Reuters reports, as the decision by Standard and Poor's to cut its outlook on the UK to negative also impacted trading.
Banks led the fall, with HSBC, Banco Santander and UniCredit declining by between 2.3 per cent and 3.7 per cent.
Oil companies also slipped, with Total, BP and Shell shedding between 1.7 per cent and 2.4 per cent of their share price.
Market strategist Joshua Raymond noted that many investors have opted to "further distance themselves from equities" following the move by Standard & Poor's.
"The banks, miners and real estate sectors are the main weights on the European markets and this is no surprise," he stated, adding that the markets have been further weakened by the Fed's announcement that the country may see a lengthy recession.
