NEW YORK - August 18, 2011 - European equities suffered their biggest daily fall in two and a half years on Thursday, as a slew of data reinforces that the United States remains firmly mired in the Second Greatest Depression.

German shares lost most, with traders citing the effects of a short-selling ban on financial stocks in other parts of Europe and intensifying worries about politicians' lack of a plan to address the euro zone sovereign debt crisis.

The European banking sector, exposed to the euro zone debt crisis, fell 6.6% and is down 29.7% this year. Heavyweight fallers included Barclays and Société Generale, both down 11.6%. Germany's Commerzbank fell 10.5%.

The FTSEurofirst 300 index of top European shares ended the session provisionally 4.9% lower at 923.85 points, its biggest fall since March 2009.

"The market is beginning to price in a (Depr)ession. The Philadelphia Fed number was an absolute abomination," said Michael Hewson, market analyst at CMC Markets. "Until we get some clear idea of how policymakers are going to deal with euro zone sovereign debt problems, it's not getting to get any better," he added.