European stock exchanges wilted, with the FTSE 100 index in London shedding 0.9% to close at 5,768 points.
In Paris the CAC 40 fell 1.4% to 4,676, its fifth straight decline, while in Frankfurt the DAX lost 2.2% to end the day at 6,544. Technology stocks fell after Intel said weaker prices for some of its memory chips could hurt profits, adding to worries about technology sector spending and growth.
The world's top handset maker Nokia fell 5.2%. Financials were the weakest sector with HSBC falling 3.4%, UBS down 3.4%, and UniCredit down 2.6%.
US shares fell as news on the economic and corporate front remained grim and investors monitored growing friction in South America. At 5.15pm, the Dow Jones was down 1.3% at 12,097 after three consecutive losing sessions.
The Nasdaq dropped 1.1% to 2,233. There was little to help the bulls, as US financial giant Citigroup may need more capital in the face of a growing US property crisis.
Dublin's ISEQ index was also lower this afternoon on the back of weaker banking shares. The index was down 88 points (1.4%) to close at 6,203, with AIB down 29 cent to €13.11, Bank of Ireland losing six cent to stand at €9.07 and Irish Life and Permanent slipping 16 to €10.34. Shares in CRH were down 19 to €23.89 despite reporting profits and earnings growth for the 15th year in a row. Total Produce shares jumped over 5% to 60 cent as it said its revenues rose by 30% last year.
Tokyo's Nikkei 225 index ended flat at 12,992 after hitting a six-week low earlier in the session, as some exporters rose on the back of a more stable yen, although financial shares remained weak amid continued credit concerns.
