Europe's main stock markets plummeted Monday, as telecom and technology stocks found profit takers and Wall Street suffered turbulence.

London's FTSE 100 dropped 101.8 or 1.55 percent to 6466.6 as financial and computer-related issues led the market lower.

Chip designer ARM Holdings led the way, helped to a near-8 percent slide by a strong "sell" recommendation from brokerage house Nomura.

The real casualties were London-listed South African companies, which had a hard time as the rand and the Johannesburg exchange suffered a beating.

Miners Anglo American and Billiton both declined more than 6 percent, and insurer Old Mutual was similarly lower.

Germany's Dax index dropped more than three percent with technology and insurance companies turning negative as investors took profits amid rate-hike fears in the united states and Europe.

The Xetra Dax index lost 3.5 percent, or 282 points, to 7693.85. At its worst, the index was some 350 points down on the session, although it too found succor in Wall Street's refusal to buckle.

The Paris Bourse ended with sharp losses as a global selloff in "new economy" shares took its toll on the star performers of recent sessions. The CAC 40 tumbled 173 points to 6336.93.