7 percent.
Markets in Europe also suffered sharp sell-offs in early deals but were later able to slow the slide ahead of the opening of trade on Wall Street.
"We must be very calm in face of the fallout from a financial crisis in the United States ... and ensure more transparency in the international financial system," French President Nicolas Sarkozy insisted.
In Germany Chancellor Angela Merkel, seeking to shore up sentiment, declared there was no danger of a recession in Europe.
"There is no reason to believe there will be a recession in Europe or in Germany," Merkel told NDR-Info radio.
The chancellor said the government of Germany, Europe's biggest economy, was doing everything in its power to try to calm the markets.
"Europe is an anchor of stability in the world economy," Merkel said.
German Economy Minister Michael Glos made a