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European Markets Crumpled – Sinister yet again

Italy drops tax on high earners

Bad news spread fast. It was pitch-black expedition with red tickers rolling out in all European stock markets right through Thursday, September 22, 2011. Major of those bunged more than 4% down. With 4.7% FTSE 100 of Britain went kaput, DAX of Germany was knocked down by 5%, whereas France’s CAC 40 tumbled 5.3% citing uppermost of that among its next of kin.

It was nexus of some ruinous news that turned out as spook, bullying investors around the world. The ghastly sketch of Greek-Euro zone debt crisis can be seen, as clearly as nose on one’s face, on backcloth. It led global indices to dip down, with not as much of optimism of recovery in near future. Adding up to this likely futile stab by Fed was a gesture asking European Union to hang up with debacle at least for some more time.

Banking industry suffered the worst decline in the middle of intact devil-spirit. Top losers at FTSE 100 were Standard Chartered around -2.64% and another stock that conked out was Weir Group that fell 6.25%. The stocks which were still in red at DAX are Heidelberg Cement with -5.23% and Aktiengesellschaft with -4.2%. European banks are in the focal point followed by IMF’s piece of advice on recapitalization. IMF has continued to look forward to European Financial Stability Fund to get back on secure ferry.

This shore-up by Evangelos Venizelos, Greek Finance Minister, while Greece is on its way to default, "There is great nervousness in the euro zone, the European banking system and the world economy."

S&P has chosen to downgrade Italian state debt and few of Italian banks as well.

The crisis, for many, is the 2008 downward spiral that is at a standstill hindering economies to recuperate. The euro-zone countries could do with fleet comeback and embark upon debt crisis.