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.