World stock markets were sharply lower again this evening as shares in more US financial companies plummeted and a gloomy trading update from Bank of Ireland hit the Dublin market.
Tuesday's $85 billion rescue of insurer AIG by the US Federal Reserve did little to calm investor nerves, while a boost from news of merger talks between UK banks HBOS and Lloyds TSB quickly fizzled out.
The Dublin market ended down 191 points (4.7%) at a new five-year low of 3,859. Shares in Bank of Ireland were down 14% at €3.96 in late trading after it said its earnings for the first half of its financial year would be lower than the same time last year. AIB was down almost 9% at €6.33.
On Wall Street, the Dow Jones was down 291 points at 10,768 while the Nasdaq was off 70 at 2,138. Shares of Wall Street firms Morgan Stanley and Goldman Sachs plummeted more than 40% and 20% respectively.
In London, the FTSE tumbled 113 points (2.25%) to 4,912, with HBOS losing another 19% to 206p despite confirming talks on a takeover by Lloyds TSB. In Paris, the CAC lost 2.1% to 4,000 and in Frankfurt, the DAX was down 1.75% at 5,861. Earlier, Tokyo's Nikkei gained 1.2% to 11,750.
