Stocks slid across the world as investors pondered the possibility of a Greek sovereign debt default and its impact on the euro zone.
Britain's FTSE 100 fell 2 per cent, France's CAC 40 2.5 per cent and Germany's DAX 2.8 per cent. Hong Kong's Hang Seng lost 2.8 per cent. The Japanese stock market was closed for a public holiday.
U.S. stock futures pointed toward a weak opening on Wall Street. Dow futures fell 142 points, or 1.2 per cent, to 11,304, while S&P 500 futures lost 18.3 points, or 1.5 per cent, to 1,193.50.
The euro slipped 1 per cent to $1.3642 (U.S.) after European policymakers failed to calm escalating worries that Greece will default and that the debt crisis could engulf larger euro zone economies and the region's banks.
Greek Prime Minister George Papandreou's decision to cancel a visit to the United States to chair an emergency cabinet meeting at home and a regional election defeat for German Chancellor Angela Merkel fuelled investors' concerns.
The European Union and International Monetary Fund have presented Greece with a list of 15 measures it needs to accelerate as a condition for accessing the next tranche of its bailout funds, Greek media said on Monday. The market is now awaiting the outcome of a conference call between Greece and its international lenders. The IMF said Athens must deliver on cost-cutting reforms to secure the vital 8-billion euro rescue payment next month.
The risk premium investors charge to hold Italian or Spanish bonds rather than benchmark German Bunds rose further above 5 per cent despite six weeks of European Central Bank buying in an effort to stabilise them.
Gold gained ground, rising $6.30 to $1,821 an ounce. Investors will focus on a policy meeting of the U.S. Federal Reserve on Tuesday and Wednesday. Any form of stimulus for the economy could lift gold prices.
Oil fell 75 cents to $87.21 a barrel.
The Canadian dollar slipped to $1.0190 (U.S.).