Stock markets in Europe and Asia reacted negatively on Monday over fear of a U.S. economy slowing down.

According to the BBC, the FTSE 100 index opened per cent lower while the Euronext 100 tumbled by 3.5 per cent. Sharp falls were also recorded across Asia, with Japan’s Nikkei 225 dropping 12.4 per cent.

At 4,451 points, a 12.4 per cent drop, the Nikkei 225’s plummet is the biggest fall by points in history. The stock market has also fallen in Taiwan, South Korea, India, Australia, Hong Kong and Shanghai.

This latest event in the stock markets was sparked by a release of weak jobs data showing concerns about the U.S. economy being weaker than expected and has raised speculation that the country is slowing.

Official employment data showed that U.S. employers added 114,000 jobs in July, far fewer than expected, while the unemployment rate ticked up.

“[There are] just some signs that potentially the market is slowing down a bit,” Shanti Kelemen, chief investment officer at M&G Wealth, told BBC. “I think that also spooked some people on Friday and you’re also seeing the Japanese market was already closed when that happened so you’re seeing Japan react to those things that happen last week.”

Meanwhile, the Japanese yen has been experiencing a sharp rise against the U.S. dollar since the Bank of Japan raised interest rates last week, making stocks in Tokyo more expensive for foreign investors.

In contrast to other central banks, including the Bank of England, the U.S. Federal Reserve held off cutting interest rates last week with major American companies such as Amazon and Intel since reporting disappointing financial results.