Asian & European Equities Slump amid Hightened Concern over Economic Growth

Stocks in Europe and Asia slid over 1% on Thursday, as renewed concerns over the weak rate of economic growth sank equities across global markets.

Japan's Nikkei index is down 1.7%, with China's index in Shanghai down 1.4%. Germany's DAX index is down 1%, and London's FTSE index is lower by 0.9%.

While Thursday's move was partly attributed to Wednesday's terrible day for the U.S., some investors are becoming concerned that weak growth could soon turn to recession again.

Recent data in China and the U.S. indicates that output is down, with natural disasters, high commodity prices and weak confidence weighing on recovery.

Further damaging the situation is political turmoil. Japan's Prime Minister Naoto Kan announced his resignation after critics scrutinized his administration's response to the nuclear crisis after the earthquake and tsunami.

Additionally, U.S. legislators have failed to arrive at consensus on the budget. The national debt ceiling has yet to be raised, and many economists warn of dire consequences if quick action isn't taken.

CNBC's Patrick Allen notes that "The data from the world's largest economy has fallen so sharply that investors have been caught off guard, raising fears over a double-dip recession."

Investors are likely to pay close attention to the developing fiscal issues across Europe and the U.S. Particularly, any notable movement by central banks, the IMF, the EU, or the Federal Reserve will be highly influential.