US stocks fell as a slump in oil dragged down energy producers and investors speculated aluminium producer Alcoa Inc will kick off another disappointing earnings season.
In late afternoon trade, the Dow Jones Industrial Average had slid 137.16 points, or 1.60 per cent, to 8,462.02.
The tech-heavy Nasdaq had shed 37.85 points, or 2.41 per cent, to 1,533.74 and the Standard & Poor's 500 index retreated 21.09 points, or 2.37 per cent, to 869.26.
LONDON - European stock markets closed lower on Monday, extending losses as investors waited anxiously for upcoming corporate earnings reports to see just what damage the global financial crisis had imposed.
In London, the FTSE 100 index of leading shares was down 22.35 points, or 0.5 per cent, at 4,426.19 points.
FRANKFURT - The Dax lost 64.27 points, or 1.34 per cent, to 4,719.62.
PARIS - The CAC 40 index sank 53.38, or 1.62 per cent, to 3,246.12.
TOKYO - Monday was Coming of Age Day in Japan with markets closed for the national holiday.
On Friday, the Nikkei average fell 39.62 points, or 0.45 per cent, to 8,836.80.
HONG KONG - Hong Kong share prices closed 2.8 per cent lower on Monday, led by falls in Chinese banks on concerns more major shareholders will sell down stakes.
The benchmark Hang Seng Index was down 406.44 points, or 2.83 per cent, at 13,971.00.
WELLINGTON - The NZSX-50 index was up 10.86 points, or 0.39 per cent, to 2,768.27.
