European markets plunge despite rescue packages

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Ibex 35, Madrid. Photo: EFE

European markets are tumbling in early trading amid ongoing fears about the state of credit markets despite the British government's 50 billion-pound (US$87.5 billion) rescue package for the banking system.

Banking stocks are among the biggest fallers across European markets, with Credit Suisse AG, BNP Paribas SA and Societe Generale some of the worst hit.

However, British banks have fared slightly better after the British government's announcement that it stands ready to take stakes in British banks and give them fresh capital.

By mid-morning London time Wednesday, the CAC-40 index in France was 229.33 points, or 6.1 percent, lower at 3,502.89. Germany's DAX was down 323.99, or 6.1 percent, at 5,002.64. Britain's FTSE 100 index was 237.22, or 5.2 percent lower, at 4,367.50.