Europe's main stock markets closed lower this evening with the Spanish stock exchange hit by fears of an imminent crash in the housing market.
In London the FTSE 100 index shed 0.77% to close at 6,429 points, in Paris the CAC 40 lost 0.53% to 5,886 points while in Frankfurt the Dax retreated 0.89% to finish at 7,270 points.
In Madrid, the unease over the housing sector was triggered by the collapse of shares in Spanish real estate company Astroc, which have lost more than 60% in less than a week, after an auditor's report raised concerns over its finances.
The market was also spooked by comments on the Spanish property market by the president of French construction firm Eiffage, Jean-Francois Roverato.
Roverato justified rejecting a takeover offer from Spanish construction group Sacyr on the grounds that the Spanish firm's real estate assets in its home market 'could very soon be revised down.'
In Madrid the Ibex 35, which has struck record highs in recent weeks, closed down 2.7% percent at 14,578 points.
US stocks turned also turned lower as Wall Street reacted to weaker-than-expected reports on the housing market and consumer confidence, overshadowing generally strong earnings reports.
Dublin's ISEQ ended down 128 points at 9,573 with falls in the banks and CRH, and with Elan down 82 cent at €10.40 after its results disappointed investors today.
Around two hours before the close, the Dow Jones was up 0.3% at 12,962 and the Nasdaq was up 0.07% at 2,525, despite weaker-than-expected data on existing-home sales and consumer confidence.
Earlier today, Japanese share prices closed flat, weighed down by Wall Street's retreat last night and investor caution ahead of a slew of domestic company results and economic data due this week.
