European stock markets suffered a massive sell-off today, with losses of up to 7% in some markets, as investors sold shares because of concerns that the US economy will fall into recession.
In London, the FTSE plunged 5.5%, or 324 points, to 5,578. In Paris, the CAC lost 6.8% to 4,744 and in Frankfurt the DAX shed 7% to 6,790. Paris and Frankfurt both recorded their biggest single-day losses since the attacks of September 11 2001.
In Dublin, €3 billion was wiped off the value of Irish shares as the ISEQ closed down 273 points, or 4%, at 6,261, its lowest level in two and a half years.
The falls followed Friday's announcement by US President George Bush of financial plan to revive the US economy. But there are also new worries that many US consumers, facing difficulties paying mortgages, are also beginning to default on credit cards. There are fears about the effect this will have on banks' willingness to lend.
Earlier, Tokyo's Nikkei index closed down a hefty 3.86% at 13,326, hitting the lowest point for more than two years. Hong Kong's Hang Sang index plunged 5.5%. Wall Street is closed today for the Martin Luther King holiday.
