Thursday, August 18, 2011

US, Europe stocks maintain plunge trail

Traders have lost confidence in the world's economic growth.

Source: Press TV

The European and United States stocks suffer renewed plunges as the dire Western economy continues to steal the investors' confidence.

On Thursday, the Wall Street Dow Jones Industrial Average plunged 276.32 points (2.4 percent) following a 4.5 percent drop in London's FTSE 100 index, Reuters reported. Germany's Dax also fell 5.8 percent.

Other US markets also sustained heavy losses. The Standard and Poor's (S&P) was down by 2.3 percent, while the tech heavy Composite Nasdaq plummeted by 3.1 percent.

Also on the day, the shares of some European banks, such as Barclays' and the Royal bank of Scotland's, fell in value by more than 11 percent. In the US, Bank of America's shares dipped 5.6 percent.

Concerns sustain that the Eurozone debt crisis and the debt-ridden US economy drags the world back into another global recession.

The Western economic doldrums has contributed to the investor diffidence that has caused the financial markets to suffer major losses over the recent weeks.

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