Paris  - In the wake of share price plunges on stock markets around the world, the Paris Bourse opened sharply lower on Monday.

Shortly after opening, the blue-chip CAC 40 was down 4.49 per cent, at 3,897.60, with all 40 listed companies in the red.

But banks were hit hardest, with the recently rescued French-Belgian financial service group Dexia off by 12.39 per cent, to 7.48 euros (10.15 dollars).

French banks Societe Generale and Credit Agricole were both off nearly 7 per cent, while BNP Paribas was down 3,88 per cent, to 65.58 euros, after the announcement that it had taken over a majority of the troubled bank Fortis in Belgium and Luxembourg. (dpa)