Against the decision of the Greek unexpected rescue the country’s latest plans for a referendum, rekindled fears of default on the country market, U.S. stocks tumbled on Tuesday

At 16:00 on November 1st EDT (GMT at 04:00 on November 2), the Dow Jones industrial average fell 297.05 points to close at 11,657.96 points, down 2.48%; Nasdaq Composite Index [0.18% 2011.66 ] fell 77.45 points to close at 2,606.96 points, down 2.89%; Standard & Poor’s 500 index fell 35.02 points to close at 1,218.28 points, down 2.79%.

In view of Greece’s fiscal austerity and the deterioration of the economic recession has sparked a growing public outcry, Prime Minister George – George Papandreou on Monday night announced shocking, will target assistance to the country’s latest rescue plan for a referendum. G20 summit later this week will be held in France.

Decision on the referendum in Greece before EU leaders last week to develop a three-pronged plan: to make banks and other private investors, the Greek government bonds held by 50% write-down to reduce Greece’s debt burden; to recapitalization of the European Bank [0.98 -2.00%] of; euro rescue fund to enhance the fire.

U.S. economic data the market showed little reaction. U.S. Institute for Supply Management (ISM) announced in October from September ISM manufacturing index fell 51.6 points to 50.8 points. According to the Bloomberg survey, economists on average expected to be 52.0 points.

European stock markets fell Tuesday, the biggest sell-off to bear the financial sector. Greek ASE Composite Index fell 5.9%. Tok Pan-os 600 index fell 3.5 percent, to close at 235.06 points. The three major indexes in Frankfurt, Germany DEX index plunged 5.00%, to 5834.50 points; the French CAC40 index in Paris plunged 5.38%, to 3068.33 points; UK FTSE 100 index fell 2.21%, to 5421.57 points.

Responses are currently closed, but you can trackback from your own site.

Comments are closed.