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Profit warnings, emerging market woe hit Europe shares

LONDON- European shares slid more than 5 percent early on Friday, as investors reeled at a slew of dismal results, while bank and oil shares tumbled on growing concerns about the global economy, in particular emerging markets.

At 0715 GMT the pan-European FTSEurofirst 300 index was 5.4 percent at 825.41, having hit a low of 824.79, its lowest level since mid-2003. In Asia Japan's Nikkei slid 9.6 percent as fears of a global recession mounted.

Hammered banks led the decline, with HSBC down 9.6 percent, Santander off 8 percent and UBS shedding 5.4 percent. The European banks sector dropped 6.4 percent.

Oil shares also tanked as crude prices dropped, with shares in BP, Royal Dutch Shell and Total shedding between 5.3 and 7.2 percent.

Volvo, the biggest faller in Europe, dropped about 18 percent after reporting worse-than-expected third-quarter results.

Amid the raft of dismal results Peugeot and Renault both lost about 14 percent after issuing profit warnings.

"Just when we thought it was safe to get back in the water the markets remind us how choppy they can be," said Felix Riley, head of binaries at ChoiceOdds.

"For every silver lining there is a cloud right now and the fear of more systemic failure in the global economic machine haunts every person wishing to go long."