Almost a 3 percent drop was noted in Dow Jones and Nasdaq indexes while London’s FTSE 100 index sank about 2.5% .Similarly, French and German markets each lost around 3%.

The results came forward when US data suggested mounting unemployment claims and sluggish shop sales.

The European Central Bank has shown 1.5% growth forecast in 2009, but now it cuts to 1.2%.

In the US, the jitters prompted after an ADP Employer Service report that showed 33,000 jobs cut during August. Weak sales during closely-watched back-to-school period also became the cause of anxiety in economic activities. …read the rest of this entry»