The euro tumbled underneath 1.27 dollars on Friday, hitting the lowest level in two years on expectations of eurozone interest rate cuts and slowing economic growth, dealers said. In early morning London trade, the European single currency dived as low as 1.2667 dollars, which was last seen in October 2006.

LONDON: The London stock market plunged by more than five percent on Friday ahead of crucial economic data that was expected to confirm Britain's economy shrank in the third quarter. Shortly after the open, the capital's FTSE 100 index of leading shares nosedived by 5.51 percent or 225.04 points to stand at 3,862.79 points.

FRANKFURT: Frankfurt's DAX 30 index fell by 6.63 percent to 4,220.23 points in opening trading on Friday as investors showed alarm over weak corporate earnings.

Stock markets across Europe were deeply in the red, with London off by more than five percent and Paris down by nearly five percent in early trading.

PARIS: The main Paris stock market CAC-40 index fell 4.91 percent in early trading Friday, losing 162.54 points to 3,148,33. The index plunged after heavy falls on Asian markets and in line with a heavy drop on other leading European markets, having edged up 0.38 percent on Thursday.

COPENHAGEN: The Danish central bank raised its key interest rate by 0.50 points to 5.50 percent Friday in a bid to support the krone, it said in a statement.