European stock markets are in sharp decline today as fears grow that the nuclear fall-out from quake-stricken Japan will stymie the supply chain of global manufacturers.

As at lunch time Germany's DAX had plunged by nearly 5%, while the French CAC 40 had slid by almost 4% with London's FTSE 100 adrift by 2.5%.

It followed a second and much worse day for Japan's Nikkei 225 index which closed more than 10% down on the radiation fears.