The shares in global stock markets have fallen sharply as a result of concerns over the European banks and the health of global economy.

The Dow Jones Industrial Average on Wall Street has closed down by 2.65% and the markets of Europe and East Asia have also faced similar falls.

The investor and the shareholders are very much concerned about the fact that the banks of Europe could face funding problems as they have to repay the loans in this week. Sources also suggest a weaker recovery in the US and China.

The stock markets of Europe have faced a sharp fall with the FTSE 100 of UK slipping down by 3.1%, Cac 40 of France losing 4% and the Dax index of Germany faced a fall of 3.3%. The value of Euro also weakened which helped to push the pound to a new 19 months high against the Euros.

The pound has gone up almost half of a cent to reach 1.2389 Euros, which is its highest value since the financial crisis in November of 2008. The European Central Bank (ECB) will give fund to the banks to get them on the track.