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Business/Finance See other Business/Finance Articles Title: World markets plunge on U.S. fears LONDON, England (CNN) -- Stock markets around the world plummeted Monday, prompted by pessimism about U.S. President George W. Bush's plans to boost the U.S. economy. Tokyo investors are worried about how a possible U.S. recession could hurt exporters' profits. India's Sensex stock index fell nearly 11 percent -- its second biggest percentage drop ever -- before recovering to 7.4 percent, while Hong Kong's Hang Seng index suffered its largest percentage drop since the terrorist attacks of September 11, 2001 when it fell 5.5 percent to 23,818.86 points. In Japan, the benchmark Nikkei 225 index closed on 13,325.954 points, a slide of 3.9 percent and its biggest dip in two years. Shanghai's Composite index fell 5.1 percent. Markets in Europe reacted with London's FTSE 100 Index down 4.02 percent at 15.30 GMT, the CAC-40 in Paris down 5.33 percent and Frankfurt's DAX dropping 6.02 percent. Video Watch report on stock market chaos. » The U.S. markets are closed Monday for Martin Luther King Day but stocks in Mexico tumbled by 4.77 percent on opening while Argentina and Brazil's fell by 4.64 percent and 6 percent respectively. The Toronto Stock Exchange also opened more than four percent down, falling by 543.13 points to 12,193.13 and taking around US $68 billion off the market's value. A drop of 6.6 percent last week wiped out gains made by the market last year. On Friday U.S. President George W. Bush announced an economic stimulus plan involving a $145 billion tax relief package. But investors remain skeptical that the plan will encourage consumer spending, said CNN's Eunice Yoon. Don't Miss * Bush calls for quick, temporary tax relief to spur economy * Asian economies seen less reliant on U.S. * Stocks rally after Asian plunge "What people are wondering here is will those tax breaks actually address some of the main issues - not only the weakness in the financial sector or the weakness in the housing market but will they actually get people spending again," she said. She added: "People out here in Asia rely very heavily on the consumer in the United States and that's one of the reasons why Toyota, which has about 54 percent of its business in the United States, saw its share price tank this morning." Today's fall will renew speculation that the crisis in the U.S. housing market may trigger a global recession. advertisement "There's a big fear people are so gripped by debt now they won't spend but will pay down their debt, and if that happens that doesn't mean more manufacturing, it doesn't mean more employment, it doesn't help the economy," said CNN's Todd Benjamin. "People feel at large that what the Bush administration is proposing is too little, too late," he added
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#1. To: Pinguinite (#0)
Could very well be an ugly day on Wall Street tomorrow, however I've seen WS do exactly the opposite than what is expected. If there really is a 'plunge protection team', they are rightly busy today trying to set up positive markets in the morning.
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