German Chancellor Angela Merkel will hold a telephone conference with French President Nicolas Sarkozy today as stock markets around the world continue to slide on a combination of worries over the US economy and Europe's debt crisis.
Ms Merkel's office confirmed that a call with Mr Sarkozy was planned for later today.
Germany's ARD broadcaster reported that the conference was also to include Spain's prime minister Jose Luis Rodriguez Zapatero.
Global stocks are facing renewed selling pressure, while the yield on 10-year Spanish and Italian bonds are ratcheting higher, up toward the 7% level that markets think are unsustainable.
The sell-off follows the biggest one-day points decline on Wall Street since the 2008 financial crisis.
Oil extended sharp losses to fall below $84 a barrel amid expectations a slowing global economy will undermine demand for crude.
In Europe, major markets fell, adding to losses yesterday, while Japan's Nikkei 225 stock average slid 3.7% to 9,299.88 and Hong Kong's Hang Seng dived 4.6% to 20,877.74. China's Shanghai Composite Index lost 2.2% to 2,626.42.
The Dow Jones closed yesterday down 512.76 points, at 11,383.68. It was the steepest point decline since December 1, 2008.
Thursday's decline was the ninth-worst by points for the Dow. Investors fretted over the US economic recovery ahead of Friday's release of crucial jobs figures for July, which often set the tone in markets for a week or two.
Many were also rattled by the lack of agreement in Europe about debt and how to stabilise the euro, said Tom Kaan of Louis Capital Markets in Hong Kong. He said they were watching to see if the US Federal Reserve launches a new stimulus effort.
Elsewhere in Asia, South Korea's Kospi sank 3.7% to 1,943.75 and Taiwan's benchmark skidded 5.6% to 7,853.13. Australia's benchmark dropped 4% to 4,105.40 and India's Sensex shed 2.8% to 17,196.06.
Investors, already fidgety after protracted political bargaining to raise the US debt limit and worries that Italy and Spain are getting deeply embroiled in Europe's debt crisis, searched for assets considered safer such as gold.