US markets fell sharply on Thursday, on concerns about China and potential restrictions by the Obama on risks taken by banks.Reports also showed an unexpected rise in weekly jobless claims.Dollar was stronger, as the euro fell on concerns over Greece.Reports showed an index of manufacturing activity in the Philadephia region unexpectedly fell in January.

The 30-stock Dow Jones industrial average was down 2.05 percent,down 216 points to 10,393. The broad Standard & Poor's 500 index was down 21 points, down 1.81 percent, to 1,117.Nasdaq composite index down 28 points,was down 1.23 percent, to 2,263.CBOE Volatility Index gained 2.16 percent to settle at 18.01.

Gold futures were slipping,down 1.58 percent,down $18 to $1,092 an ounce, while crude oilwas trading down 92 cents at $76.82 a barrel.