European and Asian stocks slumped on Labor Day after US growth fears hit the markets late on Friday following weak employment data that showed the US economy had added no jobs at all in August.

Stocks in Europe on Monday traded lower on the news with the FTSE 100 down 1.7 percent to 5,201, the Dax 30 dropping 2.6 percent and the CAC 40 index in France decreasing by 2.4 percent.

Earlier Asian markets showed unease with the Asia Pacific Index dropping 2.7 percent, the Hang Seng Index down 2.95 percent to 19,616, and the Nikkei 225 down 1.86 percent.

Attention will now focus on President Obama's speech on Thursday which is expected to outline the government's efforts to create more jobs.