Eurostoxx 50 Index drops 1.3%, while the German DAX Index sheds 0.7%, and the French CAC 1.7% below the opening level. In the UK, the FTSE Index dips 1.25% less than two hours after the opening bell.
European markets are trading under strong risk aversio,n following escalating tensions in Libya, where army jets and helicopters bombed demonstrators causing more than 200 deaths, and raising serious concerns about shortages on oil production.
Asian stocks have moved lower on Tuesday weighed by a strong earthquake in New Zealand's Cristchurch, which has killed at least 65 people, and Moody's decision to cut Japan's Aa2 debt rate to "negative", from stable.
Dollar rises on risk aversion
EUR/USD retreat from Friday's high at 1.3715 extended on Asian session below 1.3600 to hit day low at 1.3525, before picking up to 1.3575 area on early European session.
GBP/USD retreat from Friday's high at 1.6260 extended in Asia below 1.6200 to find support at 1.6130 at London session opening, and pick up to 1.6180.
USD/JPY attempted to bounce up from 82.85 low on early¡y Asian session, to be capped at 83.45 and the paitr plunged on European session opening returning below 83.00 to hit a fresh 8-day low at 82.80.