After a couple of strong sessions on hopes the EU would sort out their debt mess, international markets retreated sharply overnight as it became apparent that a resolution is still some way off.
In Europe, the FTSE gave up 76 points (-1.4%), whilst the CAC (-0.9%) and DAX (-0.9%) didn't fare quite so badly.
Stateside, the Dow Jones shed 180 points (-1.6%) to settle at 11011, whilst the S&P 500 lost 2.1% and the Nasdaq slumped 2.2%.
The euro dropped against the yen and the greenback amid concerns European leaders will fail to agree on a solution for the region's debt crisis.
The Aussie and Kiwi dollars lost ground amid decreased risk appetites, also stemming from eurozone concerns.
Oil declined for a second consecutive session, shedding (-3.8%) to settle at US$81.21 a barrel. Gold also lost ground, giving up 2.1% to settle at US$1618 a barrel.
There is no major local data due out for today's session.