Selloff hits three days as economic worries mount

Weak economic figures heightened stock investors' anxiety over the extended rally, knocking US shares lower for a third day.

The Dow Jones industrial average lost 83.93 points, or 0.66 percent, to 12,723.58. The Standard & Poor's 500 Index fell 9.30 points, or 0.69 percent, to 1,347.32. The Nasdaq Composite Index dropped 13.39 points, or 0.47 percent, to 2,828.23.

European shares hit a two-week closing low, hit by weak US economic data, concern over China's growth outlook and forecast-lagging earnings.

The pan-European FTSEurofirst 300 index of top shares closed down 1.4 percent at 1,134.61 points, hovering near its 50-day moving average after dipping just below it earlier in the session.