European stock markets closed sharply lower Wednesday with losses of four percent and more after much worse-than-expected US inflation and housing data hit already weak sentiment.

In London, the FTSE 100 index of leading shares fell 4.82 percent to 4,005,68 points.

In Paris, the CAC 40 lost 4.03 percent to 3,087.89 points and in Frankfurt the DAX tumbled 4.92 percent to 4,354.09 points.