Most European stock markets fell sharply this evening following disappointing economic data from the US and a decision by the European Central Bank to keep interest rates at current levels of 4.25%.
London's FTSE dropped 1.8% to close at 4,870.34 points while the Paris CAC slumped 2.25% to 3,963 and the Frankfurt DAX lost 2.51% at end at 5,661.
But Dublin's ISEQ index raced 4.9% higher to close at 3,823 this evening as Government legislation giving a €400 billion guarantee to Irish-owned banks was passed by the Oireachtas and signed into law by President McAleese. In reaction, Anglo Irish Bank shot 21% higher to close at €5.03, while Irish Life and Permanent rallied 9.8% to €6.05, Bank of Ireland added 7% to 4.61 and AIB jumped 11% to €6.66.
On Wall Street, US stocks plunged this evening on strains in the credit markets, caution about the fate of the $700 billion financial rescue bill and bleak economic reports. The Dow Jones was down over 2% to stand at 10,588 while the Nasdaq had slumped 2.7% to trade at 2,012.
Earlier, Tokyo's Nikkei 225 index ended 1.9% lower at 11,155, hitting a three-year low on worries about the financial crisis.
