European stock markets settled sharply lower on Wednesday, as the possibility of a victory by Donald Trump in next week's U.S. presidential election and lower oil prices spooked global equity markets.

Europe's leading Blue-chip index, EURO STOXX 50 lost 42.98 points or 1.42 percent to settle at 2,980.17. UK's benchmark index FTSE 100 lost 71.72 points or 1.04 percent to close at 6,845.42.

Meanwhile, Germany's benchmark index DAX fell 155.23 points or 1.47 percent to end at 10,370.93. French benchmark index CAC 40 fell 55.61 points or 1.24 percent to end at 4,414.67.