US stock markets in New York tumbled tonight over concerns that Greece's debt crisis could spread.
The Dow Jones ended 348 points or 3.2% lower at 10,520, recording its biggest percentage fall since April last year. The Nasdaq lost 83 points (3.4%) to 2,320.
Investors had been on edge throughout the trading day after the European Central Bank did not discuss the outright purchase of European government bonds, as some had hoped they would, to calm markets, but gave verbal support instead to Greece's savings plan, disappointing some investors.
At one point the Dow Jones dropped more than 998 points - a record daily fall in points - but recovered quickly. Reports said a mistaken trade may have been partially to blame for the huge drop.
Market observers questioned why shares in Procter & Gamble tumbled precipitously, falling 20% at one point for no apparent reason but then recovering almost as quickly. The company said it was looking into reports that a trader accidentally entered a sale in billions of dollars rather than millions.
Earlier, European stock markets lost more ground this evening as the ECB remarks failed to reassure anxious investors. ECB head Jean-Claude Trichet ruled out a Greek debt default and insisted that the problems besetting Greece were different from those faced by Spain and Portugal.
In London, the FTSE fell 1.5% to close at 5,261, with banks among the worst hit. Barclays was down 6.5% to 305.5p, while Lloyds lost 5.8% to 56.5p. In Paris the CAC shed 2.2% to finish at 3,556, while in Frankfurt the DAX slipped 0.9% to 5,906.
Dublin's ISEQ ended down 77 points (2.4%) at 3,110, with banks also among the biggest fallers. Irish Life & Permanent dropped 5.8% to €2.45, Bank of Ireland lost 4.7% to €1.42 and AIB dropped 4.5% to €1.25. CRH fell more than 5% to €18.52, but Grafton added 0.9% to €3.47 after a trading update signalled improving conditions in its UK market.
Earlier, Tokyo's Nikkei index slumped 3% to end at 10,696 on deepening fears over Greece's debt crisis as investors returned to the market after a long holiday break. Hong Kong's Hang Seng index closed 1% down at 20,133.
