Stock markets around the world slumped into the red today after Israel's killing of the spiritual leader of the militant group Hamas added to global security worries and caused a broad sell-off by investors.
In New York the Nasdaq sank 41.74 points, or 2.15 per cent, to 1,898.66. The Dow Jones industrial average fell 167 points, or 1.64 per cent, to 10,019. The Standard & Poor's 500 Index lost 19 points, or 1.76 per cent, to 1,090.
Europe's stock indices closed at their lowest level of the year today on concerns consumer and business sentiment could be shaken by security jitters.
Selling was broad-based, from the consumer cyclicals sector to travel to technology, media and telecoms issues, with the exception of Belgacom, which bucked the glum market to close 4.78 per cent higher in its market debut.
The FTSE Eurotop 300 index of pan-European blue chips finished 1.9 per cent lower at about 958.7 points - its lowest close since December 31st 2003 - while the narrower DJ Euro Stoxx 50 index fell 2.1 per cent to about 2,711.5.
Security fears in the wake of the Madrid bombings and concerns that new attacks could hurt consumer and business confidence, have sparked a selling spree that hammered European equity markets from 20-month highs back to where they started 2004.
In London the FTSE 100 closed 1.9 per cent lower - with more than £20 billion wiped off the value of Britain's biggest shares. The DAX shed 2.4 per cent, the CAC 40 was 2.1 percent weaker and the Swiss blue chip index lost 2.7 per cent.
Sectors most highly exposed to the economic cycle such as technology, autos and media were today's worst performers, while defensive favourites such as utilities outperformed.