European stocks plunge 3pc

EUROPE'S major stock markets plunged by more than three per cent overnight after Dubai's shock call to suspend the debt of a key state company fuelled anxiety over heavy public borrowing.

EUROPE'S major stock markets plunged by more than three per cent overnight after Dubai's shock call to suspend the debt of a key state company fuelled anxiety over heavy public borrowing.

London's FTSE index of leading shares closed 3.18 per cent lower at 5194.13 points.

Frankfurt's DAX index fell 3.25 per cent to 5614.17 points and in Paris the CAC closed 3.41 per cent lower at 3679.23.