US shares moved lower today as fears of a credit crunch linked to the US subprime mortgage sector raced through the global economy.
The Dow Jones was down 0.5% at 13195 and the Nasdaq was also down around 0.5% at 2541 in mid-day trading.
Meanwhile, European shares suffered their biggest one-day percentage slump since February today, fuelled by fears of a liquidity crisis stemming from problems in the US subprime mortgage market.
The ISEQ in Dublin closed down over 4 per cent at 8328.
In London the FTSE100 closed down 232 points, or 3.7%, at 6,271 and in Paris the CAC closed down over 3% and Frankfurt was down around 1.5%.
Banking shares were among the worst hit in Europe with Barclays down 6.4%, ABN AMRO down 3.5% and Societe Generale declining 5%.
Mining stocks such as Rio Tinto and BHP Billiton slid more than 6% amid falling metal prices as investors feared a possible credit crisis could affect the overall economy, hampering growth.
Markets slumped today after central banks had to inject extra money to shore up the financial system.
The European Central Bank has pumped €155.8 billion into money markets in the last two days to ease pressure on credit markets, where nervousness is pushing up short-term interest rates for banks and companies.
The Federal Reserve made a similar move this afternoon and says it stands ready to inject even more liquidity into the US banking system if necessary.
Stock markets in Asia had also tumbled after central banks there had to inject extra money to shore up the financial system. In Tokyo, the Nikkei closed down 2.4% at 16,764.
