The pan-European STOXX 600 index dropped 0.7% by 0711 GMT after Asian markets tumbled on concerns about China’s recovery and tighter regulation on technology companies.
In Europe, interest rate-sensitive banking shares fell as government bond yields extended their decline. An index of the euro zone banks was down 1.5% as falling rates hurt profit margins.
Miners and automakers also fell more than 1%.
German automotive lighting group
slipped 1.5% after brakes maker Knorr-Bremse dropped plans to acquire a 60% stake in the company. Knorr-Bremse shares jumped 8.5%.
Remote connectivity software specialist Teamviewer tumbled 9.4% on reporting weaker-than-expected billings growth in the second quarter.
In the UK, Deliveroo rose 2.3% after it posted 88% jump in orders during the June quarter.
