Global markets fall

GLOBAL stock markets are plunging over fears about the debt problems in the eurozone and mounting tension between South and North Korea.

The FTSE 100 in London was down by 2.6 per cent, while Germany's Dax dropped 2.3 per cent and France's Cac 2.74 per cent.

The falls followed plunges in Asian markets overnight.

Stocks in South Korea and Japan were badly hit after reports that North Korea had told its people it was on a war footing with its neighbour.

Japanese stocks fell by 3.1 per cent and in South Korea 2.7 per cent.

The weekend rescue of Spanish bank Cajasur by Bank of Spain and sovereign debt problems have contributed to the volatility on the markets.