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European stocks slump, Madrid down by 2.26%

The progress of the German DAX index pictured at the stock exchange in Frankfurt on October 30, 2012. European stock markets slid on Wednesday and the euro fell against the dollar in the wake of US President Barack Obama's convincing re-election win that was nonetheless expected to be challenged quickly by a looming US fiscal crisis.

European stock markets closed sharply lower on Wednesday, with London's FTSE 100 index of top companies sliding 1.58 percent to 5,791.63 points.

In Frankfurt, the DAX 30 skidded 1.96 percent to 7,232.83 points, while in Paris the CAC 40 dropped 1.99 percent to 3,409.59 points.

Madrid's stock exchange plunged by 2.26 percent to 7,660.70 points following the release of gloomy growth prospects by the European Commission.