European financial stocks suffered sharp losses as worries about the extent of the crisis in the sector deepened. The FTSE 100 fell 4.8%, with the Dax and CAC 40 also down nearly 5%. The Dow Jones Industrial Average tumbled below the 10000 mark for the first time in nearly four years on the heels of a global market selloff spurred by continuing concern about dismal credit conditions. The Dow Jones Industrial Average plunged more than 700 points in afternoon trading to around 9600 as the credit crisis continued to deepen even amid efforts by regulators around the globe to ease the pain. The Dow Jones Industrial Average closed down 370 points after earlier falling by nearly 800 points on concern that banks remain reluctant to lend despite the efforts of regulators to unsnarl the credit crisis. Concern about how deeply the financial sector's woes are harming the broader economy contributed to a steep decline in the price of oil, which settled down $6.07, or 6.5%, at $87.81 a barrel on the New York Mercantile Exchange.
Source: The Wall Street Journal