European stock markets ended at their lowest close in 18 months this evening as relief after Tuesday's surprise US interest rate cut quickly vanished.
The Paris CAC index plunged 4.25%, while Frankfurt's DAX lost 4.9%, with both markets hit by comments from ECB president Jean-Claude Trichet, who appeared to rule out an early cut in euro zone interest rates. There was also weak data from the euro zone services sector.
London's FTSE 100 index of leading shares closed 2.3% lower after another rollercoaster day of trade. Shares of energy companies were among the biggest fallers, sinking along with crude oil prices on persistent worries over a US recession. The Dublin market emerged relatively unscathed, however, ending down just seven points at 6,490.
On Wall Street, the Dow Jones was down 2% this evening, as some analysts feared that the Fed's 0.75 point interest rate cut smacked of panic. In Tokyo, Japanese share prices closed up 2%, breaking a two-day streak of heavy losses.
