World stock markets take the brunt of US economic storm

Kuala Lumpur News.Net
Monday 29th September, 2008

US stocks, which have plunged due to the US House of Representatives defeating the financial rescue package, are in company with other world markets.

In London, the FT 100 lost more than 5 per cent or 270 points to end at 4,819, a three-year closing low.

Markets have also plunged in South America, with Brazil's main index down more than 9 per cent.

Mexico's Bolsa Index lost 6.5 per cent.

On Monday, Asian stock markets plunged.

In Hong Kong, the Hang Seng Index lost more than 4 per cent.

In Japan, the Nikkei fell over 1 per cent.

In Australia both the All Ordinaries and the ASX 200 shed almost 2 per cent.

The Australian dollar has also slumped against the greenback, buying just over 80 US cents.

The US dollar has gained despite the setback in Congress, also rising against the pound sterling and the euro.

Amid the financial uncertainty, investors have flocked to US Treasury bonds and gold.

Gold has jumped by almost $US25 an ounce to nearly $US909.

Oil prices plunged 10 per cent after the defeat of the rescue plan.

On Monday, West Texas crude was trading at $US97.90 a barrel.

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