European stocks plummet

(02:07) Report

Jan. 21 - Stocks fall across Europe on growing fears of U.S. recession and more bank subprime writedowns.

In Germany, Europe's biggest economy, the DAX index of 30 leading shares fell sharply, as investors dumped their stock. One analyst in Frankfurt said the situation could be described as a crash.

The story was the same across Europe, with banks the worst sector as some warned that they still expected more subprime-related writedowns.

Joanna Partridge reports for Reuters

Soundbites:

  • Dirk Mueller, analyst, IFC exchange brokers
  • Chris Wheeler, European banking analyst, Bear Stearns

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