Europe's main stock markets plunged this evening after Dubai's shock call to suspend the debt of a key state company fuelled anxiety over heavy public borrowing. Bank shares were particularly badly hit due to worries about their exposure to Dubai.
In London, the FTSE ended down 3.2% at 5,194, with Barclays losing almost 8% to 294p and Royal Bank of Scotland 7.8% lower at just under 34p. Insurer Legal & General dropped 7.4% to 78.5p. Frankfurt's DAX fell 3.25% to 5,614, while in Paris the CAC closed 3.4% lower at 3,679.
In Dublin, the ISEQ ended 82 points (2.8%) lower at 2,792, with Aer Lingus losing 8% to 53 cent. Bank shares were weak, as AIB ended down 7.6% at €1.60. Independent News & Media fell 9.4% to 14 cent after securing EGM approval for its restructuring plan which includes a rights issue.
Wall Street markets were closed for the Thanksgiving Day holiday in the US. Earlier in Asia, Tokyo fell 0.6% to close at 9,383, while the Hang Seng closed 1.8% lower at 22,210.
