Overseas stocks are plunging following the devastating sell-off in the U.S. Thursday, ahead of a crucial July jobs report out of Washington.

Fear has gripped investors amidst growing worries that the global economy is sinking into recession and the debt crisis in Europe may soon push Spain and Italy into financial collapse.

As of 7:55 a.m. (EDT), Britain’s FTSE-100 index is down 2.10 percent, Germany’s DAX has dropped 1.79 percent, while the France's CAC-40 is essentially flat. European equity markets are now at 11-month lows.

Asian bourses were clobbered overnight. Japan’s Nikkei-225 index plummeted 3.72 percent; the Hong Kong's Hang Seng tumbled 4.29 percent; while the Shanghai Composite fell 2.15 percent.

Meanwhile, analysts in the U.S. are expecting an increase in non-farm payrolls by 85,000 jobs –- should that figure not be matched, stocks could correct even further and Treasury yields could sink.

Oil futures have fallen on anticipated weaker demand, while the gold price has surged to a new all-time high.