US shares have fallen sharply with investors cautious over whether the House of Representatives would back the revised bank rescue plan.
The House is due to discuss the scheme later, with a vote expected on Friday. The bill successfully passed through the US Senate on Wednesday.
On Wall Street, the Dow Jones index closed down 348 points, 3.2% at 10,482, dragging European shares lower.
The falls came as France said it would host a summit on the financial crisis.
The Nasdaq index slipped 4.5%, 92.7 points to close at 1,976.7.
Earlier, the UK's FTSE 100 closed down 1.8% at 4,870.3 points while Germany's Dax index shed 2.5% and France's Cac 40 lost 2.3%.
President Bush says the crisis bill must be passed
Sentiment was further hit by glum economic data - showing that the number of people filing for new unemployment benefit claims rose to a seven-year high, while factory orders had seen a steeper-than-expected drop in August.
And doubts that any approved bailout plan would be enough to avoid a long economic slump and revive flagging energy demand sent oil prices lower. US light, sweet crude fell $4.56 to $93.97.
"There's a big fear that the bill is not going to pass, which is weighing on the markets, and at the same time, we are watching commodities totally fall apart," said Angel Mata of Stifel Nicolaus Capital Markets in Baltimore.
The office of French President Nicolas Sarkozy said the special meeting on Saturday would discuss a co-ordinated response to the financial turmoil amongst European members of the G8 ahead of a meeting of world finance leaders in Washington next week.
UK Prime Minister Gordon Brown is due to attend, together with German Chancellor Angela Merkel, Italian Prime Minister Silvio Berlusconi and European Central Bank President Jean-Claude Trichet.
Investors are still concerned about the efficiency of this rescue plan and how it can help the global economy
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