World stock markets mostly fell today on the back of another dizzying plunge in oil prices and stubborn fears over China and the global economy.
Equities extended losses in most of Asia and Europe, with energy firms taking a hit from a fresh collapse in the cost of crude oil.
The Milan stock exchange also dived on swirling speculation over the health of several Italian banks, as did the Lisbon share market.
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Wall Street was closed today, a US holiday.
Global oil prices slumped beneath USD 28 per barrel today after the lifting of sanctions against key producer Iran under its nuclear deal with world powers.
Investors also remain on edge over China's economic slowdown -- and its impact on the faltering world economy.
"European markets are doing their best to shrug off yet another negative session in Asia, as investors attempt to gauge whether or not the market has reached a good buying point," said Rebecca O'Keeffe, head of investment at stockbroker Interactive Investor.
"China, global growth and the oil market continue to cause concern and the market remains highly nervous, but at some point momentum may turn as active investors attempt to catch the bottom."
Iran today ordered as planned an increase in its oil production of 500,000 barrels per day.
"While the lifting of sanctions in Iran was well flagged, the prospect of additional supply from Iran has seen oil prices slide further," added O'Keeffe.
"With oil supply remaining in huge excess to demand, it is difficult to see what will cause the market to reach equilibrium so that prices can stabilise."
While the decision to free Tehran of the strict embargoes had been well telegraphed, the news hammered Middle East equities yesterday, which were already under pressure from slumping oil.
The United States and the European Union lifted the sanctions at the weekend after the UN's atomic watchdog confirmed Iran had complied with its obligations under the deal to curb its nuclear programme.
Brent oil nosedived as low as USD 27.67 in earlier Asian trading hours, touching a new 12-year low before rebounding back above USD 29, but then slipped back again to USD 28.74 in the European afternoon.
