European stock markets suffered big losses today as the London FTSE 100 index shed 4.5% with traders unnerved by prospects for a worldwide recession. The FTSE closed at 4,041 points. In Paris the CAC 40 plunged 5.1% to 3,298, while in Frankfurt the DAX fell 4.5% to 4,571.
Banks were the biggest drag on the markets, with Spanish lender Santander tumbling 10.5% on concerns over Latin American economies. Energy stocks also fell, with BP, Total and Shell down more than 5% as oil slid $4 to near $68 a barrel on news that US crude stockpiles rose by 3.2 million barrels last week.
US stocks accelerated their losses Wednesday in a global stock market rout driven by rising recession fears, with Wall Street investors nervous about dour company outlooks and tight credit. The Dow Jones dropped 3.1% to 8,757 at 5.10pm and the Nasdaq slid 1.8% to 1,666. McDonald's bucked the downturn, with a rise 1.1% after the fast-food firm posted stronger-than-expected profit.
Dublin's ISEQ index slumped 6.45% in thin trading to stand at 2,227 - down 188 points. The Irish banking stocks ended well down with Bank of Ireland plunging 14% to €1.65 and Irish Life & Permanent dropping 7.8% to €3.55. Anglo Irish Bank lost 13% to €1.92 and AIB finished 8.8% off at €3.39.
Earlier, Tokyo sank 6.8%, or 632 points, to end at 8,675 - snapping a three-day rebound - as concerns deepened over faltering world economic growth.
