French stocks slumped on Thursday, with concerns about the pace of economic recovery in China and tighter regulation on technology companies weighing on markets.
Chinese government bond yields slumped after the State Council, the country's cabinet, said authorities would use timely cuts in banks' reserve requirement ratios (RRR) to support the economy.
The shift to some kind of policy easing raised worries about softening growth momentum in the rest of this year.
Inflationary concerns also mounted after the minutes from the Fed's June meeting showed the U.S. central bank has been caught off guard by the recent rise in inflation.
The benchmark CAC 40 dropped 116 points, or 1.8 percent, to 6,412 after ending 0.3 percent higher on Wednesday.
Cyclical stocks succumbed to selling pressure, with automaker Renault losing 3.2 percent on economic recovery concerns.
Banks BNP Paribas, Credit Agricole and Societe Generale fell 2-4 percent as government bond yields extended their decline.
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