German Chancellor Angela Merkel will hold a telephone conference with French President Nicolas Sarkozy today as stock markets around the world continue to slide on a combination of worries over the US economy and Europe’s debt crisis.

Japan’s Nikkei stock index nosedived nearly 11% today as the earthquake-shattered country faced an unfolding nuclear crisis after a radiation leak was detected at a crippled power plant and residents were warned to stay indoors. Other Asian markets also tumbled.