Global stocks fall on German auction, China data

US stocks suffered a sixth straight day of losses on Wednesday as frustration over the euro zone's debt crisis, coupled with weak Chinese factory data, further dented investor sentiment.

The Dow Jones industrial average sank 236.17 points, or 2.05 percent, to 11,257.55 at the close. The Standard & Poor's 500 Index dropped 26.25 points, or 2.21 percent, to 1,161.79. The Nasdaq Composite Index lost 61.20 points, or 2.43 percent, to 2,460.08.

The S&P 500's six-day decline is the longest such streak since a seven-day slide that ended Aug. 2.

European shares fell to their lowest close in seven weeks after low demand at a German bond auction, while weak Chinese factory data added to concerns about slowing global growth.

The Bund auction, which saw a low bid-cover ratio, raised fresh concerns about the impact on Germany of the region's debt problems, with investors worrying about the growing costs attached to the crisis.

The pan-European FTSEurofirst 300 index of top shares closed down 1.3 percent at 902.23 points at its day's low, marking its lowest close since Oct. 4.

A weak batch of economic data from China and the United States also heightened worries about global growth slowing down.

China's factory sector shrank at its fastest pace in 32 months, renewing fears the world's second largest economy was slowing down, while data showed U.S. consumer spending growth slowed in October.

Miners, whose performance is correlated to global growth, featured among the worst performers, with the STOXX Europe 600 Basic Resources index down 1.6 percent.