European stocks continued to sink on Thursday amid mounting concerns over the fiscal health of the euro zone periphery, despite an attempt by European Central Bank President Jean-Cladue Trichet to assuage fears.
During late European trade, Spain's Ibex 35 dove a staggering 5.62%, France’s CAC 40 was down 2.68% and Germany's DAX slipped 2.52%.
Meanwhile, Britain's FTSE 100 was down 2.35% and the EURO STOXX 50 was down 3.22%.
U.S. stocks also suffered steep losses: The Dow Jones Industrial Average was down 1.71%, the S&P 500 index plunged 2.20% and the Nasdaq Composite Index slumped 2.10%.
Earlier in the day, Trichet said he was “confident” that Greece would take the necessary action to cut its spiraling budget deficit, after the ECB kept its interest rate at a record low of 1%.
Also Thursday, a seasonally adjusted report released by the U.S. Department of Labor showed that the number of U.S. workers filing new claims for unemployment benefits rose unexpectedly last week.