European stocks followed Asian markets lower, hurt by weak corporate and economic news and confirmation that Britain plunged into recession at the end of last year, The Associated Press reported. After reports of job cuts at Microsoft and weak U.S. unemployment and housing figures, data showing Britain's economy shrank a quarterly 1.5 percent in the fourth quarter _ the sharpest downturn in almost 30 years _ added to investor gloom. Britain's benchmark FTSE 100 index fell 1.6 percent to 3,987.04. Other European indexes fared even worse, with Germany's DAX down 2.7 percent at 4,105.73 and the French CAC 40 shedding 2.4 percent at 2,802.34. Analysts said the shrinkage in British output was worse than expected and surprised with sharp drops in industrial production and services. Europe's losses followed even sharper drops in Asia, where Japan's Nikkei 225 dropped 3.8 percent to 7,745.25, while Hong Kong's Hang Seng Index eased 0.6 percent to 12,578.60 and South Korea's Kospi sank 2.1 percent to 1,093.40. Both financial and technology stocks were under pressure on fears a deeper global downturn would continue to weigh on corporate earnings.
