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January 21, 2008

World Stocks Plunge on Fears of US Recession
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http://enews.voanews.com/t?ctl=1AFE1A3:A6F02AD83191E1601B1DDFAB465FB3EC5C6F54A6CF9DC2CA& US markets closed
for a national holiday Monday, but stock futures trading indicates
further losses expected when markets reopen Tuesday





A stock dealer reacts in front of German stock index (DAX) display at
Stock exchange in Frankfurt, 21 Jan 2008Stock prices dropped sharply
in Europe and Asia Monday, with fears of economic problems in the
United States leading to the biggest single-day losses in recent
years.

In Hong Kong, the Hang Seng index fell 5.5 percent - its biggest fall
since the September 11, 2001, terrorist attacks. Losses of between
three and seven percent were recorded in India, China, Britain, France
and Germany.

While links among global economies are extremely complicated, analysts
blame recent losses on fears of a recession in the United States.

The United States is the main export market for many overseas
businesses. Foreign investors also have bought stakes in U.S.
companies.

When American home loan companies began reporting large numbers of
defaulting loans in late 2007, the losses spread into other financial
institutions, tightening credit markets and sparking worries about
Americans' high levels of debt.

Last week, President Bush proposed a $145 billion stimulus plan to
encourage more consumer spending. But analysts say the measure may not
be able to prevent a recession - defined as a broad decline in a
nation's economy over a period of six months.

U.S. markets are closed for a national holiday Monday, but stock
futures trading indicates further losses are expected when markets
reopen Tuesday.

Some information for this report was provided by AFP, AP and Reuters.


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