European markets were left unimpressed with the idea that the Federal Reserve will likely raise interest rates at its June meeting.
The FTSE 100 hit a 10-week low mid-afternoon and closed 1.82% down at 6,053.35.
Metal prices were also down on the news, with gold falling as much as 2.26%.
In Frankfurt, the Dax was down 1.48%, closing at 9,795.89. In Paris, the Cac 40 closed at 4,282.54, 0.85% down.
In Frankfurt, Bayer (BAYRY) closed 8.2% down on news that it held talks about a takeover of Monsanto (MON) . Analysts were not impressed with the bid, claiming that they couldn't find good arguments for the deal.
Technip (TKPPY) closed 6.3% up in Paris after the oil field services company announced a merger with Texas-based FMC Technologies (FTI - Get Report) . Under the merger agreement it appears that shareholders in the French company will be better off than their American counterparts.
The banking sector performed well on Thursday, buoyed by the prospect of a rate rise. The SX7E bank stock index gained 0.33%. In Frankfurt, Deutsche Bank was up 1.3% and Commerzbank was up 1.1%. In Paris, Societe Generale was up 1.3%.
On the FTSE, Royal Bank of Scotland (RBS) was the second biggest riser on the index, gaining 1.4%.