European stocks slumped for the fourth day in a row today to close down 1.2 per cent as mining issues tumbled following a sell-off in commodity markets and as investors bailed out of riskier emerging markets.
The pan-European FTSEurofirst index of 300 leading shares was 1.2 per cent weaker at 1,347.1 points, near a two-month low, and off a near five-year high of 1,407.5 hit last week.
But the index is still up 5.6 per cent this year. In Dublin, the Iseq closes 72 points lower at 7,696.80.
The FTSEurofirst index has suffered its worst points fall in two consecutive sessions since September 2002.
In New York, the Dow Jones opened flat but concerns remain on the future direction of interest rates.
"Clearly, what days like today do is highlight the amount of financial speculation that may be underlying some of the moves in the market," said Neil Dwane, chief investment officer for Europe at RCM.
"We still think global growth is okay, China and emerging markets are okay. And therefore, this is a sort-of healthy setback."