Bloodbath on world mkts after a sell-off in Asia

New Delhi: Following a sell-off in Asia, share markets in Europe fell sharply on renewed recession fears.

London's FTSE index plunged 7 per cent - it's lowest level since mid-2003 - after figures confirmed Britain's economy shrank 0.5 per cent in the last quarter - the first time in 16 years.

There were similar falls in other European markets. Frankfurt fell 9 per cent and Paris was down nearly 8 per cent.

Like in India, banking shares were particularly hard hit. Santander, the largest bank in the Eurozone, saw its shares plummet 11 per cent. And in Moscow, trading was suspended for one hour after the main share index dropped 7.4 per cent in the first two hours of trading.

The dow and S&P 500 futures reached what is called limit down in electronic trade, signalling massive sell-offs ahead of opening on Friday.

Shares of European giants like Volvo dropped about 18 per cent while Peugeot and Renault both lost about 14 per cent.

In Asia, Japan's Nikkei closed at a five-and-a-half year low, down 9.6 per cent after electronics giant Sony halved its full-year profit forecasts. South Korea's market plunged 10.6 per cent.

Hong Kong's Hang Seng closed down over 8.5 per cent, falling below 13,000 points for the first time in four years.

In India, the Sensex closed down 11 per cent, below the 8,700 mark for the first time since November 24, 2005, down 1,100 points - finally settling at 8,701.07.

Nifty also closed down 13 per cent below 2,600 for the first time since November 23, 2005 to finish up at 2,584.

Among the big losers were banking and realty stocks.