European stock markets closed sharply lower after much worse-than-expected US job losses in November added to concerns about the depth of a painful recession spreading worldwide.
In London, the FTSE 100 index lost 2.74% to 4,049 points. In Paris, the CAC slumped 5.5% to 2,988, falling below the key 3,000 points support level, and, in Frankfurt, the DAX fell 4% to 4,381.
US stocks steadied after initially falling after official data showed the shrinking economy lost more than 500,000 jobs in November, sending unemployment to a 15-year high.
The Dow Jones was down 0.6% to 8,326 at 7.15pm, while the Nasdaq added 0.75% to 1,456. The market had been braced for a bad November jobs report amid rapidly deteriorating economic conditions. But the Labor Department data, reported before the market open, showed the US economy lost a shocking 533,000 jobs in November and the unemployment rate jumped to 6.7%.
In Dublin, the ISEQ index of Irish shares closed down 0.8% to 2,481. Shares in Aer Lingus soared 10% on the back of an improved takeover offer from Ryanair, lower oil prices and reports that the airline believes that enough staff have taken up its revised severance package to make a cost-cutting deal with unions viable.
The banks closed, with Anglo Irish clawing back 8% to 51 cent and Irish Life & Permanent adding 7% to 1.63. However AIB and Bank of Ireland reversed earlier gains, losing over 3% to €1.97 and 98 cent respectively.
Earlier in Asia, Tokyo's Nikkei index slipped 0.8% to 7,918 as investors took profits before the key US data came through.
