Technology shares suffered as fears that other European countries apart from Greece would need cash injections to bolster their economies.
NASDAQ fell by 2.97 percent overall, standing at 2424.49, while the FTSE 100 closed at 5411.11, down 142.18 points. The Shanghai Composite was down by 35.33 points to close at 2835.28.
Investors retreaed to gold, while the US dollar showed an increase against other currencies.
Demonstrations continued in Greece as the government introduced austerity measures. Other countries that have problems in the Eurozone include Spain and Portugal.
The UK, while not in the Eurozone, also has big deficits to deal with and this Thursday voters in the UK will decide on the political future of the country.