Fears of an impending war in Iraq and a weak global economy today sent shares plunging to a 20-year low in Tokyo and to multi-year lows in Europe.
Stocks tumbled after US President George W. Bush warned the Iraq crisis was moving into the final stages of diplomacy before a decision on war.
His comments helped to drive the dollar down to a new four-year low against the euro, but oil and gold prices rose. "We are days away from resolving this issue at the Security Council," he said.
Investors were in no mood to buy into volatile equities before a UN Security Council meeting later today to hear the latest report from UN weapons inspectors and a new debate between opponents and supporters of war to disarm Iraq.
Within minutes of opening, stocks plunged to a seven-year low point in Frankfurt and a near-six-year nadir in Paris.
The DJ Euro Stoxx 50 index of leading euro zone shares fell 1.8 per cent to 2,007.6 points, levels not seen since early 1997.
The British FTSE 100 index gave up 1.4 percent to 3,504.2 points, the German DAX 30 index dropped 0.7 percent to 2,419.4 points and the French CAC 40 index lost 1.5 percent to 2,594.5 points.
Asian stocks markets had also taken a pounding earlier in the day. Japanese share prices tumbled 2.7 per cent to their lowest level for two decades. Hong Kong share prices closed 0.6 per cent lower. War worries also pushed the dollar down to a four-year low against the euro after Washington ratcheted up the pressure on Iraq.
The single European currency climbed to $1.1025 from 1.0972 late on Thursday in New York.
Oil prices ticked higher in early trading in London, with the price of benchmark Brent North Sea crude oil for April delivery rising to $33.60 per barrel from $33.53 at the close of the previous session.
On the London Bullion Market, the price of an ounce of gold rose to $356.25 from $353.95.
AFP