Major tumble for European shares

by Sanjay Jha | October 10, 2008 at 01:14 am

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There is no good news from the European Market . European equities collapsed on Friday, left vulnerable after a dramatic late sell-off in New York extended the sustained losing streak on world stock markets.

Banking stocks once more faced heavy selling as confidence in the international financial system continued to drain away, taking leading indices to fresh five-year lows.

Stock markets across Europe have fallen steeply on opening after earlier dramatic share price falls in Asia.

The FTSE 100 share index plunged 9.8% to 3887 points, the first time it has fallen below 4,000 points in five years.

There were similar falls across Europe - Paris was down 9% while Germany was down 9.6%.

Earlier Tokyo's Nikkei index dropped 9.6% while shares in Australia, Hong Kong and Singapore all plummeted.

In Russia, regulators suspended stock market trading indefinitely, citing excessive volatility.

Despite concerted government action, investors are increasingly fearful the financial crisis will prompt a global recession.

Finance ministers from the G7 leading industrial countries are set to meet in Washington to discuss the crisis.

US President George W Bush is due to make an address to the American people later in the day.