European stock markets, including Dublin's ISEQ index, closed down over 1% today, following a slump on Wall Street late on Friday due to fears about the US economy.
Dublin's ISEQ closed down 140 points, or around 1.8%, while London's FTSE closed 1.2% lower. In Paris the Cac finished down 1.6% and in Frankfurt the Dax closed down 1.2%. Earlier in Japan, Tokyo's Nikkei index fell by more than 2%.
However, shares had recovered on Wall Street around two hours before the close with the Dow Jones trading up around 0.3% and the Nasdaq was up 1%.
Meanwhile, the euro fell back slightly to trade at $1.414 this evening after it rose to a new all-time high against the dollar this morning after a weekend meeting of the Group of Seven finance ministers ended without a clear statement of concern about the 13-nation currency's strength.
The euro rose as high as US$1.4348 in Asian trading, breaking a previous record of $1.4319, set on Friday.
US stock markets had their biggest fall in more than two months on Friday, with the Dow Jones losing 2.6% after Caterpillar said several industries it serves were in recession, suggesting the US housing sector slump is infecting the wider economy.
Caterpillar is the world's biggest manufacturer of construction equipment. Its chief financial officer said there was a 50% chance the US would fall into a recession in 2008.
