Shock waves rock global markets

WORLD markets dropped sharply on Wednesday after Germany’s new curbs on traders unsettled investors.
The euro, meanwhile, recovered from fouryear lows against the dollar — reached in the aftermath of the ban — as experts suggest European central banks are considering intervening in the markets to slow the currency’s drop. The European Central Bank (ECB) declined to comment.
By late-afternoon, the euro was up 1.3% on the day at $1.2342, having earlier dropped to $1.2146, its lowest level since April 2006.
Stock markets didn’t get any such reprieve. In Europe, Britain’s FTSE 100 index of leading shares closed down 149.26 points, or 2.8%, at 5,158.08 while Germany’s DAX plunged 167.26 points, or 2.7%, to 5,988.67. The CAC-40 in France ended 105.65 points, or 2.9%, lower at 3,511.67.
US stocks failed to sustain an early flourish and the Dow Jones industrial average dropped 135.28 points, or 1.3%, at 10,375.67 and the Standard & Poor’s 500 index fell 14.59 points, or 1.3%, at 1,106.21. In Asia, shares dropped too in the wake of the German decision. Japan’s benchmark Nikkei 225 stock average dropped 55.80 points, or 0.5%, to 10,186.84. South Korea’s Kospi index lost 0.8% to 1,630.08 and Australia’s S&P/ASX 200 index was off 1.9% at 4,387.10.
Benchmarks in Singapore and Indonesia fell more than 1% and Hong Kong’s Hang Seng index lost 1.8% to 19,583.22. — AP