Markets worldwide were sharply lower this evening after news of another massive bailout for US insurer AIG and a huge cash call at bank giant HSBC spooked already nervous investors.
London's FTSE 100 index of leading shares lost 5.3% (204 points) to end at 3,626, its worst finish since 2003. Shares in HSBC closed almost 19% lower at 399 pence sterling. In Frankfurt, the DAX fell 3.5% to end at 3,719 and in Paris the CAC 40 tumbled 4.5% to close at 2,581.
Dublin's ISEQ index closed 4.5% lower this evening - down 93 points to end at 1981 - its lowest closing price in about 14 years.
After reporting a 60% plunge in pre-tax profits for last year, shares in AIB actually closed 18% higher at 46 cent. Irish Life and Permanent closed 14% higher at 72 cent while Bank of Ireland was up over 4.5% to 20 cent. Shares in Paddy Power closed almost 6% higher at €11.64 after it reported a small rise in profits, helped by its online betting division. Kingspan shares closed 4% lower at €2.12 after it posted a massive 70% fall in pre-tax profits.
Wall Street stocks dropped to new multi-year lows today on heightened fears about the financial sector after a new bailout announced for insurance giant AIG. The Dow Jones slid below 7,000 points for the first time since 1997, tumbling 250 points to stand at 6,813, while the Nasdaq slumped 42 points to 1,336.
Earlier, Tokyo's Nikkei 225 index tumbled 288 points, or 3.8%, to end at 7,280.
