Summary World stocks plunge on the basis of global economic jitters.
Paris (AFP) - World markets took fright on Wednesday at new US data underscoring the fragile state of the global economy, sending the main European exchanges tumbling to lows not seen in a year.
Wall Street opened sharply lower after the Commerce Department reported US retail sales dropped 0.3 percent in September, the first drop in seven months, raising concerns even US growth may catch the cold that has hit Europe.
London s benchmark FTSE 100 index lost 2.83 percent to 6,211.64 points, closing at its lowest level since June 2013, with Shire Pharmaceutical shares devastated by the chilling news that US giant AbbVie would review its $54 billion takeover bid.
The worrisome economic data on both sides of the Atlantic sent Frankfurt s DAX 30 down 2.87 percent to close at 8,572.15 points, a low not seen since October last year.
In Paris the CAC 40 sank 3.63 percent to 3,939.72 points, falling below the 4,000 mark for the first time since the summer of 2013.
After an initial decline on disappointing retail sales, Wall Street quickly sought to cut the losses.
The Dow Jones Industrial Average stood at 16,180.17 points, down 0.83 percent after 40 minutes of trading.
The broad-based S&P 500 shed 0.84 percent to 1,862.33 while the tech-rich Nasdaq Composite Index lost 0.64 percent at 4,201.54.
"The very bad US figures are just adding to all the bad news we ve had in Europe over the past few weeks," said Saxo Banque analyst Andrea Tueni.
Other European markets followed the downward trend at the close with Milan falling 4.44 percent, Madrid off 3.59 percent, and the Athens exchange s main index dropping 6.25 percent over investors concerns about plans to end its IMF programme early.
"Ultimately we have a heady mix of economic and geopolitical woes... Today has been an assault on all fronts and looking at the bloodbath that s out there, you could be excused for thinking Halloween had come along two weeks early," said Tony Cross, market analyst at Trustnet Direct.
Eurozone countries were scheduled to submit their budgets to Brussels on Wednesday with Paris heading for a showdown over its 2015 budget which exceeds the EU deficit ceiling with an expected shortfall of 4.3 percent of annual economic output.
In foreign exchange deals, the euro rose to $1.2789 from $1.2663 late on Tuesday in New York, as investors interpreted the retail sales slowdown as pushing back the likely date of a interest rate hike from the US Federal Reserve.
The euro also rose to 80.10 British pence from 79.58 pence late on Tuesday, while the pound climbed to $1.5965 from $1.5912.
The price of gold finished at $1,237.50 an ounce on the London Bullion Market from $1,234.75.
- AbbVie deal under threat -
Investors sentiment turned sour early Wednesday in Europe after AbbVie announced overnight that it had decided to reconsider its Shire takeover deal, citing a US crackdown on tax inversions.
The new US Treasury rules are designed to curb deals in which US companies merge with foreign businesses to relocate in a lower tax address. The loophole had threatened to slash the government s income.
Shire s share price plunged 21.95 percent to close at 4,012 pence in London trading.
"News that AbbVie may not proceed with the Shire merger has sent the pharmaceuticals sector lower, but Shire is in an absolute tailspin," said Valutrades analyst Joao Monteiro.
Oil prices also hit fresh multi-year lows on Wednesday as traders eyed plentiful crude supplies and demand fears arising from the weak global economic outlook.
Brent crude tumbled to $83.37 per barrel -- the lowest level since November 24, 2010.
In later deals, Brent North Sea crude for delivery in November stood at $84.89 a barrel, down 18 cents compared with Tuesday s close.
US benchmark West Texas Intermediate (WTI) for November was down 13 cents at $81.71.
Anglo-Dutch energy giant Royal Dutch Shell saw its A share price close down 2.76 percent to 2,114 pence while peer BP shed 2.33 percent to 416.70 pence.
And in Paris, shares in French oil and gas group Total slid 4.50 percent closing at 42.755 euros.
- Asian stocks advance -
In Asia, stock markets rose Wednesday with bargain-hunters providing some lift after recent losses, while data showing Chinese inflation at a five-year low raised hopes for fresh economy-boosting measures from Beijing.
They were reacting to Wall Street s rally on Tuesday thanks to some solid earnings reports.
Tokyo bounced back 0.92 percent after five days of losses, helped by a weaker yen which boosts exporters, while Shanghai won 0.60 percent and Hong Kong climbed 0.40 percent.
