Europe's main stock markets closed more than 2.0% lower, with London's FTSE 100 down 2.3% at 5,241 points at the end of its worst week for more than six years.
In Paris the CAC 40 index fell 2.5% to 4,197, after falling more than 3% yesterday. The DAX in Frankfurt shed 2.4% to close at 6,127. Yesterday, the European Central Bank lowered its forecasts for economic growth in the euro zone. It also unveiled tougher rules on the assets banks can submit as collateral in central bank lending operations, hurting bank stocks.
Battered Wall Street shares fell further as news of a jump in US unemployment prompted renewed talk of recession in the world's biggest economy. Coming off heavy losses yesterday, the Dow Jones slipped 0.45% to 11,138. The Nasdaq dropped 0.9% to 2,237. Market action came as the US Labor Department said the US unemployment rate jumped to a five-year high of 6.1% as 84,000 jobs were slashed in August.
The ISEQ was down 3.7% to 4,282, led by bank shares. Anglo Irish was down 34 cent to €5.24, while Bank of Ireland and AIB were 225 and 52 lower at €5.28 and €7.89 respectively. Recruitment group CPL dropped five cent to €1.90 as it warned of a difficult year ahead.
This morning, Tokyo's Nikkei fell 2.75% to 12,212.
