Scepticism over Europe’s ability to deliver a proper solution to its debt troubles and a warning from Moody’s weighed on world market sentiment.

Stocks slid again as Europe struggled to contain a debt crisis in Greece that is threatening to plunge the continent back into recession.

Mounting fears over the possibility of a Greek debt default and signs of division within Europe’s policymaking circles sent bank stocks sharply lower.

Greece has launched a tirade against United States credit ratings agencies after Moody’s downgraded its debt grade further below junk status.