European markets expected to decline at the open due to Wall Street's fall.

European stocks are predicted to experience a significant decline at the start of Wednesday, due to the drop in Wall Street and the losses in the Asia-Pacific markets.

According to IG's data, the U.K.'s index is seen opening 62 points lower at 8,234, Germany's index is 162 points lower at 18,592, France's index is 54 points lower at 7,520, and Italy's index is 280 points lower at 33,628.

The major U.S. averages, including the S&P 500, kicked off September with a decline, and this is expected to lead to a sharp decline in the region's markets.

U.S. manufacturing production indicated slowing growth for the U.S. economy, causing chip names to come under pressure during Wall Street's losing session.

The declines in the US markets caused Asia-Pacific markets to plummet overnight, with Japan's Nikkei 225 down 3.19%, leading the losses in Asia, while the broad-based Topix was down 2.79%.

In Europe on Wednesday, final services purchasing managers' index figures will be released, along with earnings from Barratt Developments and Direct Line.