Asian and European stock prices tumbled Wednesday after the International Monetary Fund's lower growth forecast added to anxiety over Wall Street turbulence and a weaker Chinese economy.

The IMF cut its forecast for this year's global economic growth to 3.4 per cent from its October outlook of 3.6 per cent.

Tokyo's Nikkei index reacted by plunging 3.7 per cent and Hong Kong's Hang Seng retreated 3.8 per cent, while China's Shanghai index fell one per cent.

In Europe, the German Dax Index and France's CAC 40 were both down more than three per cent, while the U.K.'s FTSE 100 index was down 2.9 per cent.

The IMF report came a day after Chinese data showing the world's second-largest economy cooled further in the latest quarter, dragging 2015's growth to a 25-year low of 6.9 per cent.

That slowdown in China has dampened demand for goods from oil to iron to heavy machinery.

Benchmark U.S. crude for March delivery was down 75 cents to $28.82 US a barrel in electronic trading on the New York Mercantile Exchange.

The Canadian was trading overseas at 68.30 cents US, down 0.38 of a cent from Tuesday's close of 68.69.