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Exchange of fire between Koreas led to tumbling of US stocks

Posted by Sara | Opinion | Friday 26 November 2010 3:08 am
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Exchange of fire between Koreas led to tumbling of US stocksAn exchange of fire on the Korean Peninsula and fresh concerns that the debt crisis of eurozone could spread led to a sharp fall for the US stocks.

Artillery shells were fired by North Korea at a South Korean island near their disputed western sea border. South Korea retaliated by firing for about one hour and both Koreas warned of massive retaliation if there were further attack.

From in.news.yahoo.com:

German Chancellor Angela Merkel meanwhile warned that the euro was increasingly under after the Irish government was forced to accept a bailout. Investors fear Portugal and Spain could be next.

In the US, the Federal Reserve sharply cut its forecast for economic growth and employment in the coming years.

The blue-chip Dow Jones Industrial Average fell 142.21 points, or 1.27 percent, to 11,180.73. The broader Standard and Poor’s 500 index plunged 17.11 points, or 1.47 percent, to 1,180.73. The technology-heavy Nasdaq Composite Index tumbled 37.07 points, or 1.46 percent, to 2,494.95.

The US currency rose against the euro to 74.81 euro cents from 73.41 euro cents Monday. The dollar fell against the Japanese currency to 83.16 yen from 83.27 yen.

The exchange of fire between the Koreas also led to dramatic fall in stock prices across the world.

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