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European Markets Slide as US Rescue Talks Stall

Posted Sep 26, 08 7:14 AM CDT in Business 

(Newser) – European markets swooned on news of the US bailout troubles and the failure of Washington Mutual, the Wall Street Journal reports. The Dow Jones Stoxx 600 fell 1.5%, Germany’s DAX index slipped 1.4%, and the UK’s FTSE 100 and France’s CAC-40 each shed 1.3%. In Asia, Japan’s Nikkei index lost 0.9%.

Even as the Federal Reserve increased the amount it can inject into markets abroad to $290 billion, uncertainty about the US bailout unsettled markets. Dutch-Belgian finance house Fortis led the dive, dipping 14% amid rumors of liquidity problems. Financial stocks took the worst pounding as UK’s Lloyds fell 4%, Swiss bank UBS was down 3%, and French bank Natixis slumped 4%.
Source: Wall Street Journal

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A pedestrian passes a display screen showing the FTSE financial index on a street in London, Tuesday, Sept. 23, 2008.   (AP Photo)
A stock trader is seen in front of the German Stock Index (DAX) display at the stock exchange in Frankfurt, Germany.   (AP Photo/Bernd Kammerer)
President Bush meets with congressional leaders, including the presidential nominees, in the Cabinet Room of the White House Thursday.   (AP Photo)
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Fears that the troubled assets recovery plan might be delayed or watered down . . . have exacerbated money-market tensions even beyond the extreme levels touched a week ago. - Marco Annunziata, Global Chief Economist at UniCredit in London

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