European stock markets closed sharply lower today with losses of 4% and more after much worse-than-expected US inflation and housing data hit already weak sentiment.
In London, the FTSE 100 index of leading shares slumped 4.8% to close at 4,006 with banking and oil shares markedly lower. In Paris, the CAC lost 4% to end at 3,088 and in Frankfurt the DAX tumbled 4.9% to close at 4,354.
But the Dublin market fared a little better as financial stocks got a boost amid increasing speculation that the Government is finalising a new initiative which would involve injecting capital into the banks. The ISEQ lost 34 points to close at 2,416 - down 1.4%.
After slumping under the €1 level earlier in the week, shares in Bank of Ireland rallied to close almost 13% higher at €1.05. But after earlier gains of around 30%, Anglo Irish Bank shares closed under €1, gaining 10.5% to end at 92 cents. AIB added 2.7% to close at €2.24 while Irish Life and Permanent slipped over 4% to €1.43.
US stocks also sank this evening after gloomy official data underlined the deepening troubles in the world's largest economy, with car makers desperately seeking a government bailout. The Dow Jones dropped 220 points (2.6%) to 8,205 while the Nasdaq slumped 52 points (3.5%) to 1,431.
Earlier, Tokyo's index closed down 0.66% at 8,273, weighed down by worries about the outlook for the global economy and a crisis engulfing US carmakers.
