US recession creates “meltdown” in stock markets

globalmarkets_350_18429512_0_0_7004870_300.jpg European and Asian stock markets have reported a fall following fears of a US recession, reports the BBC.

The UK’s FTSE 100 and Germany’s Dax both fell by one per cent, France’s Cac by 0.5 per cent and Japan’s Nikkei by 3.4 per cent.

According to the news provider, disappointing earnings from firms such as JP Morgan Chase alongside the current weak state of the US economy are to blame for the disappointing figures.

Francis Lun of Fulbright Securities predicted that the US markets would continue to affect global shares.

“American financial mismanagement has brought us to this economic meltdown,” he said.

Trent Muller of ABN Amro Morgan was pessimistic about the stock market future, claiming: “We will see a bit of panic selling with a lot of investors taking cash off the table today.”

Reuters recently reported that the FTSE 100 would see limited growth this year due as investors take a more cautious approach following the credit crunch.

read more | digg story

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