Markets in US, Europe plummet over global recession fears.
The United States' recovery is stalling, and Europe's debt crisis is threatening to strike Spain and Italy, which have two of the continent's largest economies, the Washington Post reports.
Investors, concerned about another recession in the U.S. and the global economy, took part in a massive stock sell-off, sending the Dow Jones industrial average down 512 points. The Dow has now given back all of its gains for the year.
Investors are increasingly afraid that the world's leading governments, weighed down by debt and wounded by the last economic downturn, may not have the wherewithal to keep the emerging crisis in check.
A dangerous dynamic is taking hold in which the spreading debt troubles in Europe create new risks for the United States, while the chance of another U.S. recession makes the European fiscal crisis even worse.
And these perils come as China and other rising economic powers are trying to slow their economies to combat inflation, leaving the world without any obvious tent pole to hold up global growth.
Virtually every asset that investors considered risky was in steep decline.
American stocks were down 4.8 percent, as measured by the Standard and Poor's 500 index, and there were similar drops in foreign stocks, oil prices and the debt of financially troubled nations such as Spain and Italy.
The world's central bankers have reportedly taken a series of actions to address the turmoil in the markets. (ANI)
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|Publication:||Asian News International|
|Date:||Aug 5, 2011|
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