World stock markets have fallen sharply this evening after results from US building and financial companies raised further concerns about the extent of the US housing slump.
US stock markets opened lower as a result, and prompted heavy losses on European markets. Dublin's ISEQ was down 2% to 8,830, wiping €2 billion of the value of Irish shares. This was the ISEQ's first close below 9,000 since December.
Banks were particularly hard hit, with AIB, Bank of Ireland and Irish Life & Permanent losing around 3% of their value.
Elsewhere in Europe, Paris and Frankfurt were down by 1.7%, while London's FTSE closed down almost 2%.
Countrywide, the largest US mortgage lender, reported a 33% drop in quarterly profits and slashed its full-year estimate. Meanwhile, building materials company USG reported sharply lower earnings and said the housing downturn could continue for some time.
