Europe's main stock markets closed mixed amid volatile trading.
In London, the FTSE closed down 0.56% to 6,109 points, while in Paris the CAC lost 0.66% to 5,443. In Frankfurt, the DAX bucked the trend by finishing up 0.3% at 7,446. Banks bore the brunt of the damage in London, with Northern Rock down 5.3% to 687p and Standard Life off 2.1% to 310p.
US stocks stabilised after opening lower in volatile trading amid investor fears about widening signs of a credit crunch that have pummelled Asian and European markets.
The Dow Jones was down 0.12% to 13,013 points, while the Nasdaq dropped a marginal 0.03% to 2,498.
The Federal Reserve intervened amid the market volatility by pumping an additional $7 billion into the financial system to loosen credit. The Fed has now interjected $69 billion into the markets since Thursday.
On the inflation front, the US Labour Department reported tamer US consumer prices in July, in line with most Wall Street analysts' forecasts.
In Dublin, the ISEQ dropped 51 points (0.6%) to 8,342, with packaging group Smurfit Kappa down 62 cent to €15.88 after its second quarter results came in slightly below some broker expectations. In the financial sector, Anglo Irish fell 22 to €13.78.
This morning, Asian markets had suffered steep losses after an overnight slump on Wall Street. Tokyo's Nikkei index had closed down more than 2% to 16,476 after two days of relative calm. In Hong Kong, the Hang Seng closed down 631.60 points, or 2.9%, at 21,376.
