Europe Sees Biggest Stock Plunge Since 9/11

US futures drop, adding to fears for domestic markets
By Matt Cantor,  Newser User
Posted Jan 21, 2008 4:10 PM CST
A taxi passes the Stock Exchange in London, Thursday, Nov. 8, 2007. European markets, including Britain's FTSE 100, experienced record falls today. (AP Photo/Kirsty Wigglesworth)   (Associated Press)
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(Newser) – Amid continuing concerns about a US recession, European stocks took their biggest single-day plunge since 9/11 today, reports MarketWatch. Losses from financial institutions appeared to be the biggest culprit in the day's 5.4% drop, which added to a crippling trend: The Dow Jones Stoxx 600 index has dropped 23% since mid-2007. On American shores, Dow futures dropped, sparking fears of a nosedive tomorrow.

"Market sentiment is really sour," said a strategist. "There's been more bad news from the financial sector on top of continued recession fears.” A decline of over 20%, such as Europe has seen, is considered indicative of a bear market—and some blame President Bush. "Ambivalence over Bush's rescue plan for the US economy was the trigger of this rout," said an analyst. (Read more stock market stories.)