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Canada's benchmark S&P/TSX fell 34.58 points to 7,249.02.
European markets fell as the Karachi car bombing raised terrorist attack fears and uncertainties about tensions between Pakistan and India. In London, the Financial Times-Stock Exchange 100 index ended with a loss of 141.10 points, or 2.96%, to 4,630.80. Traders ignored a report that UK unemployment fell to a 26-month low and average wages rose substantially in latest reporting period.
In France, the CAC 40 declined 114.26 points, or 2.89%, to 3,843.07. And in Germany, the DAX Index fell 166.29 points, or 3.72%, to 4,303.85.
In Asia, the markets finished lower. In Japan, the Nikkei fell 224.21 points, or 2.01%, to close at 10,920.63, a three and a half month low, on souring sentiment due to a continued slide in U.S. stocks and uncertainty over Japanese government policies shown in a second anti-deflation package released yesterday.
In Hong Kong, the market lost 163.81 points, or 1.47%, to close at 10,955.52.