German stocks fell on Wednesday to extend losses from the previous session as investors fretted about weakening U.S. and Chinese growth.
Economic activity in the U.S. manufacturing sector contracted in August for the fifth consecutive month and the 21st time in the last 22 months, raising concerns the worlds largest economy is headed for recession.
Elsewhere, a private survey revealed that growth in Chinas services sector activity slowed in August despite the summer travel peak.
The benchmark DAX was down 122 points, or 0.7 percent, at 18,624 after losing 1 percent the previous day.
In corporate news, Commerzbank AG shares fell 1.7 percent. According to a Bloomberg report, the German government plans to sell a stake of 3 percent to 5 percent in the lender.