Europe stocks sharply lower after US and Asia sell-off

European stocks were sharply down in morning trade after concerns about a trade war and higher US bond yields stoked global investor concerns.

In London, the FTSE 100 index of leading UK shares was down more than 1.7% at 7,020.

Markets in Asia had plunged to a 19-month low after US shares suffered their worst losses in eight months.

The global sell-off came as IMF head Christine Lagarde said stock market valuations have been "extremely high".

In Paris, the Cac 40 share index was down 1.6% at 5,122 points, while in Frankfurt the Dax index fell nearly 1.5%.

The FTSE 100 and the Cac 40 have fallen to their lowest levels since April, while the Dax is at its lowest since early 2017.

Markets in Asia had followed US stocks, which slumped on Wednesday.

Japan's benchmark Nikkei 225 dropped 3.9%, its steepest daily drop since March. In China, the Shanghai Composite fell 5.2% to its lowest since 2014.