With US markets closed last evening due to the Labor Day holiday, many investors would have been forgiven for thinking it would be a quiet night.

It was anything but quiet, however, with European markets collapsing violently amid renewed eurozone debt fears.

The FTSE gave up 3.6%, whilst the CAC (-4.7%) and DAX (-5.3%) suffered even heavier falls.

Banks were hit hard all around Europe due to concerns about growth and structural reform, as well as lawsuits filed against 17 lenders by the US federal housing regulator, suggesting they sold $196 billion of risky home loans.

Royal Bank of Scotland, one of the banks named in the lawsuit, slumped 12%, whilst Deutsche Bank, another bank named, shed 8.9%.

Economic news did nothing to help the cause, with private sector activity across the eurozone growing at the slowest rate in two years in August.

Political and economic issues also weighed in Italy, with the government coming under increasing pressure to approve its austerity package, which many believe is being compromised.

The British pound fell to a seven-week low against the US dollar following reports showing a decline in confidence and the services index.

Elsewhere, the euro fell below US$1.41 for the first time in month, driving traders to the safety of the Swiss franc.

Gold pushed back above US$1900 an ounce amid safe-haven buying with bullion adding US$26 (+1.4%) to settle at US$1902.90 an ounce.

Oil fell to the lowest level in more than a week on speculation that slowing economic growth will reduce fuel consumption.

Today's session will bring us data in the form of home loans and the current account (11:30am, AEST).

We will also be in receipt of the RBA's latest interest rate decision and meeting minutes, at 2:30pm, AEST.