Leading European stock markets plunged this evening on mounting fears of recession in Europe and the US. The London FTSE 100 shed over 7% to close at 4,080 points while in Paris the CAC 40 fell 6.8% to 3,381 points. The Frankfurt DAX gave up 6.5% to end at 4,862.
Dublin's ISEQ index also accelerated its losses this evening, closing 6.4% lower at 2,830 - down 193 points. Shares in the banks were mixed with Anglo Irish Bank closing 6% higher at €2.25 and AIB edging 0.3% up to end at €3.21. But shares in Bank of Ireland slumped 14% to €2.02 while Irish Life and Permanent closed at €3.84 - down almost 4%. Shares in Paddy Power were down 3.4% at €11.30 after an increase in betting tax was announced by Finance Minister Brian Lenihan yesterday.
US stocks continued to weaken today after the latest US economic data heightened fears about recession, with the Dow Jones dipping below 9,000 points. The mood of US investors soured when a government report showed that sales at US retailers last month slid by the biggest monthly drop in over three years. Consumer spending accounts for two-thirds of US economic activity. The blue-chip Dow Jones index slumped 3.5% to stand at 8,984 while the Nasdaq dropped 3% to 1,722.
Earlier, Japanese share prices closed up 1.065, extending the previous day's record gains on hopes the global financial crisis was easing. The Nikkei-225 index rose 100 points to close at 9,547, a day after surging over 14%, its biggest ever gain.
