European stock markets closed sharply lower this evening as new US data and surging oil prices underscored inflationary concerns. London's FTSE index tumbled 2.9%, or 185 points, to close at 6,192. The Paris CAC sank by 1.7% (87 points) to end at 5,055 while the Frankfurt DAX was down 1.5% (107 points) to 7,119.
Dublin's ISEQ index slumped 2%, or 135 points, to end the day at 6,325 with airline shares weaker as the price of oil soared past $129 a barrel. Ryanair shares dived almost 5% to close at €2.77, while Aer Lingus was down 2% to €1.81. Shares in Bank of Ireland closed 2.6% lower at €8.57 ahead of its annual results tomorrow. The rest of the Irish financial stocks also finished weaker.
US stocks tumbled this evening as sentiment took a hit from worrisome inflation data and a weak earnings report from Home Depot that highlighted troubles in the housing market. That spike in crude oil futures also dampened the mood on Wall Street with the Dow Jones down 190 points (1.5%) to stand at 12,838 and the Nasdaq dropping 29 points (1%) to stand at 2,487.
Earlier this morning, Japanese share prices retreated as investors locked in gains a day after the main index hit a four-month high. The Nikkei finished down 0.8% at 14,160.
