Europe's main stock markets closed sharply lower again.
In London, the FTSE 100 ended down 1.2% at 6,144 points after a choppy session in which European shares oscillated between higher and lower ground in yet another day of high volatility in global markets.
Bruised by global fears of tightening credit conditions, banks gave up earlier gains and all ended in the red. Barclays lost 3.3% to fall to 661p, Royal Bank of dropped 1.3% to finish on 573p. Meanwhile, an RBS-led consortium seeking to win a bid battle for ABN AMRO said it had built up a 3.25% stake in the Dutch bank and may buy more.
In Paris, the CAC fell 1.63% to 5.479, while in Frankfurt the DAX closed down 0.66% at 7,425.
The major US share indexes tumbled after home improvement retailer Home Depot revealed a sharp profit slowdown and Wal-Mart expressed disappointment over its earnings. Although Wal-Mart's second quarter profit swelled to $3.10 billion, analysts said its latest earnings had not met expectations.
The Dow Jones shed 0.82% to stand at 13,128 points, while the Nasdaq lost 0.67% to 2,525.
Dublin's ISEQ also closed down, losing 87 points to 8,427. Building materials group Grafton jumped 49 cent to €9.99 after an 18% increase in first-half profits. The company also signalled that it may buy back shares. Banks were weaker, however, with AIB down 48 cent at €18.72 and Irish Life & Permanent losing 20 to £18.00.
Earlier, Japanese share prices clawed some of their recent losses, with the Nikkei gaining 45 points, or 0.3%, to end at 16,845. The Hang Seng in Hong Kong closed up 116.22 points, or 0.5%, at 22,007.
