World Markets Dive Amid U.S. Economy Fears
Posted on Jan 21, 2008
Stock markets across the world Monday suffered the worst losses since Sept. 11, 2001. The drop prompted analysts to theorize that investors have major doubts about the ability of the proposed stimulus package to mend the American economy. U.S. markets were spared by the Martin Luther King holiday.
Last week the US government announced a financial stimulus plan which would involve about $145bn in tax cuts to encourage spending.
US bond markets, which were closed for a public holiday on Monday, are to reopen on Tuesday and many analysts say they could see sharp falls after markets worldwide reacted negatively on Monday.
Francis Lun of Fulbright Securities in Hong Kong said the falls stemmed from disappointment that the US stimulus was “too little, too late” adding that investors felt “it wouldn’t help the economy recover”.