European Stocks Tumble Amid Global Economic Concerns

European stocks had their worst session in nearly a month due to concerns about U.S. manufacturing and global growth. The STOXX 600 index dropped 1%, driven by declines in major European markets. Energy and basic resources sectors led the losses, further impacted by sluggish Chinese economic growth and potential Libyan oil deals.

European stocks plunged on Tuesday, marking their worst session in nearly a month, as alarming U.S. manufacturing data reignited fears of a global economic slowdown just before the key jobs report on Friday. The pan-European STOXX 600 index dropped 1%, with Germany's DAX falling 0.9% from its record highs earlier in the session. In France, Spain, and Italy, stocks fell between 0.9% and 1.3%.

The declines started early and worsened after U.S. manufacturing data revealed subdued factory activity, exacerbating concerns over the strength of the world's largest economy. This session was the worst for major European indexes since early August's global equity selloff, which also stemmed from recession fears.

"Over the summer, market focus has shifted from worries about persistently high U.S. inflation to fears of an economic slowdown," analysts at Danske Bank said, though they noted that the risk of a recession remains low. Europe's energy and basic resources sectors led the declines, losing 2.8% and 3.3%, respectively. This slump followed a fall in commodity prices due to sluggish Chinese growth and potential resolution of Libyan oil production disputes.

(With inputs from agencies.)