Stock markets shaken by Apple slide

Leading US shares have fallen on Wall Street, dragged lower by Apple, which slipped 3.5% after the technology giant was forced to pull an update to its iOS 8 operating system.

The main Dow Jones index was down more than 200 points, or 1.3%, at 16,986 in early trading.

Investor confidence was also knocked by weak durable goods orders figures released by the Commerce Department.

European markets also fell sharply after Wall Street opened.

Germany's Dax and France's Cac 40 indexes were down about 1.5%, while the UK's FTSE 100 was 1.2% lower.

'Under fire'

Other technology stocks listed on Wall Street were also hit by Apple's slide - both Microsoft and Intel were down 1.6%.

Earlier, the world's biggest technology company apologised after

Apple Watch unveiled alongside new larger iPhones

Apple has unveiled a smartwatch the Apple Watch its first new product line since the first iPad and the death of its co-founder Steve Jobs.

The device runs apps, acts as a health and fitness tracker and communicates with the iPhone.

While rival smartwatches already exist, experts said Apple had a history of entering sectors relatively late and then changing their direction.

Apple also unveiled two new handsets that are larger than previous models.

The iPhone 6's screen measures 4.7in (11.9cm) and the iPhone 6 Plus's 5.5in (14.0cm) - a change that analysts said should help prevent users migrating to Android.

It also announced a new service called Apple Pay, which chief executive Tim Cook said he hoped would "replace the wallet" in shops.

Apple Watch

The Apple Watch offers 11 different watch faces and allows the owner to change its straps

The Apple Watch comes in