Dublin's ISEQ index of Irish shares closed more than 4% lower this evening, wiping almost €4 billion off the value of Irish shares.
The fall was in line with other world markets, which were shaken by a report showing that the important US service sector shrank in January for the first time in almost five years, intensifying fears about a recession in the world's biggest economy.
The ISEQ losses were exacerbated by a profit warning from Readymix and a statement from DCC which said currency volatility would affect its future earnings. The ISEQ ended down 294 points at 6,616.647, with Irish Life & Permanent losing more than 9%.
London's FTSE ended down 2.6%, while Paris and Frankfurt each lost more than 3%.
Wall Street shares also slumped by almost 2%.
