Stock markets around Europe have fallen sharply today – after the German government banned whats known as ‘naked short selling’.

The value of shares on the ISEQ Index in Dublin are down over 3%.

The Euro has also taken a further hit today following the move – falling yet again to its lowest level against the US dollar in four years.

Alan McQuaid, Chief Economist at Bloxham Stockbrokers, says the German decision is causing market uncertainty.

“Germany (is) effectively declaring war on speculators – with a ban on what they call ‘naked short selling’ of certain financial instruments” he said.

“Again we’ve a situation here where it looks like certain parts of the eurozone or certain countries are doing their own thing and not going along with their fellow members”.

“That’s sending a signal really that the eurozone is divided really” he added.