European stocks plunge on debt concerns

September 5, 2011: 12:31 PM ET

NEW YORK (CNNMoney) -- European stocks fell sharply on Monday on renewed fears of a eurozone debt crisis and concerns about the global economy.

London's FTSE 100 (UKX) index finished its trading session down 3.2%, while France's CAC 40 (CAC40) dropped 4%. In Germany, the DAX (DAX) shed 5.3%.

The move followed more moderate drops in Asia's stock markets. Japan's Nikkei 225 (N225) index finished Monday trading down 1.9%, while Hong Kong's Hang Seng (HSI) index shed 3% for the day.

"Europe's faltering management of its crisis is starting to blur the line between a banking crisis and a euro crisis, resulting in a new vote of no confidence from the markets," Lena Komileva, an analyst for Brown Brothers Harriman in London, wrote Monday in a note to clients.

"Political brinkmanship" has put the possibility of a "disorderly" currency crisis and a break-up of the euro back on the table, she said.

"There no resolution to the situation in Europe," investment manager Randy Warren, who manages $75 million in assets for Warren Financial Services, said last week of the uncertainty in Europe. "The waves of fear just recede for a while."

U.S. stock markets are closed Monday for the Labor Day holiday.

On Friday, U.S. stocks ended sharply lower following a government report showing that no net new jobs were created in August -- sparking concerns that the U.S. may be headed for another recession. The Dow Jones industrial average shed 2.2% on Friday, while the S&P 500 index lost 2.5% and the tech-heavy Nasdaq dropped 2.6%. To top of page

Index Last Change % Change
Dow 18,096.90 -106.47 -0.58%
Nasdaq 4,967.14 -12.76 -0.26%
S&P 500 2,098.53 -9.25 -0.44%
Treasuries 2.12 0.00 0.05%
Data as of 8:16pm ET
Company Price Change % Change
Bank of America Corp... 15.84 -0.15 -0.94%
Alcoa Inc 14.59 -0.59 -3.89%
Chesapeake Energy Co... 15.49 -0.71 -4.38%
Cisco Systems Inc 29.33 -0.21 -0.71%
Apple Inc 128.54 -0.82 -0.63%
Data as of 4:03pm ET
Overnight Avg Rate Latest Change Last Week
30 yr fixed3.89%3.91%
15 yr fixed3.09%3.03%
5/1 ARM3.39%3.45%
30 yr refi3.96%3.97%
15 yr refi3.18%3.12%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates: