Thursday, August 11, 2011

Markets plummet over economic woes


Source: Press TV
http://www.presstv.ir/detail/193354.html

Stock markets in the US and Europe have plummeted amid renewed worries of a weak economic growth in the United States as well as a possible credit downgrade of France.

After a slight recovery on Tuesday, the Dow Jones industrial average dropped by as much as 474 points on Wednesday, AFP reported.

The NASDAQ Stock Market together with Standard & Poor's 500 dropped by about three percent in value within the first minutes of trading.

Meanwhile, stock markets across Europe, including London, Frankfurt, Paris, Rome as well as Moscow plummeted right before closure.

Italian stocks dropped the most followed by French stocks with a decline of over six percent and five percent respectively.

Societe Generale, the second largest bank in France, witnessed a drop in its share value by as much as 23 percent.

The pessimism on Wednesday came as experts speculated on a possible double dip recession in the US and further focused their attention on Europe's debt problems.

France is the most indebted European triple-A country and there have been rumors that it might be the first to get its credit rating slashed after the US.

France, however, denied such rumors and major rating agencies announced that they have no plans to downgrade the country.

Tuesday's late session rally was partly due to the announcement made by the US Federal Reserve that it planned to keep interest rates extremely low at least until 2013.

The rally was “so unbelievably fast, it's as though every computer on Wall Street hit the point where the program said buy, buy, buy, buy, buy,” said Daniel Alpert, a managing partner of investment bank Westwood Capital.

“Machines don't read [Federal Reserve] announcements, people do - and they were reacting in a negative way,” he added.

Markets also dropped as investors begun replacing riskier assets with gold as they fear leaders are failing to tackle the debt crisis in the US and Europe.

No comments:

Post a Comment

Thanks for commenting on this post. Please consider sharing it on Facebook or Twitter for a wider discussion.

Russia Today (Live)

World News 2017

South Front Military Review 2017

Syria - News 2017

US News 2017

The Russian Perspective

Debate – Global Issues 2017

Current Affairs - Important Interviews – 2017

Important Information 2016 - 2017

Yemen News 2017

Turkey News 2017

Ukraine News 2016 - 2017

Palestine & Israeli Crime 2017

Iraq News 2017

Iran News 2016 - 2017

Important Documentaries

Viewpoint, Discussion & Opinion - 2017

Abby Martin – Empire Files

Global Economic News 2017

Egypt News 2016 - 2017

Libya News 2016 - 2017

Bahrain News 2016 - 2017

Sheik Imran Hosein - Islamic Eschatology

George Galloway – Comment & Opinion

English FA Cup 2016 – 2017

New Age Weather

Space News

Music for the Revolutionary Mind

Global Revolution LIVE!

Watch live streaming video from globalrevolution at livestream.com

Japan’s 3 Nuclear Meltdowns STILL ongoing (News Censored)