European Stock Indexes Sank

European stock exchange indexes sank on Wednesday amidst continuation of global sale of shares, lead by the banking sector

London FTSE index sank by the afternoon 1.7 %, to 6,058 points. Frankfurt DAX index fell to 6.505 points; it was a loss of 1.8 %.

'Markets are obviously not sufficiently mature for thinking in the way – all right, we have finished with this, and let us start  behaving the way we used to', Phil Isherwood, the strategist of Dresdner Kleinwort said. He also added that the 10 % correction mentioned at markets could change into a prophecy come true.

Bank shares were obviously biggest losers; Credit Suisse, UBS, Barclays, Deutsche Bank and Royal Bank of Scotland were weakened by three per cent.

Creditors in the United States have activated the mortgage over unpaid loans in more than one to each 200 mortgage loanees in the fourth quarter of 2006.

Apart from that, being late with payment of the US mortgage credits in that quarter reached the highest level in the period of three and a half years, stimulating further concern of the market pegged to the US mortgage loans. The concerns were the reason for beginning of the new phase of the global sale of shares.

Furthermore, shares of mining companies were also at a loss, which got weakened as a result of a drop of prices of gold. Oil shares were also under pressure since the price of barrel did not change, to the level beneath 58 dollars.

The Tokyo Stock Exchange index dropped by three per cent, to 16.677 points.