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Thursday, September 22, 2011

IHSG down (4.100 to 3.400)

Less than in two months...the markets plunge so much....
Stock markets tumble after Operation Twist … and doubt | Business | guardian.co.uk
The US Federal Reserve's Operation Twist failed to bring calm to financial markets, which tumbled on Thursday as investors took fright at the US central bank's gloomy warning about the economic outlook.

The FTSE 100 index in London plunged 174 points in early trading, a 3.3% drop, with not a single riser in sight. In Asia, markets also suffered heavy losses, with the Nikkei closing down 2.1%, Hong Kong's Hang Seng tumbling 4.3% and Jakarta's stock market losing over 7%. Brent crude oil lost nearly $2 to $108.59 a barrel.

The sell-off came after the Fed unveiled a new $400bn bond-buying plan on Wednesday to ward off a double-dip recession, as it emerged that the Bank of England was also getting ready to pump more money into the British economy.

The Fed's open markets committee said the economic outlook had deteriorated sharply, noting there were "significant downside risks" to its economic forecasts and indicating that a full recovery was years away. "Recent indicators point to continuing weakness in overall labour market conditions, and the unemployment rate remains elevated."

This drove the Dow Jones down 2.5% on Wednesday while the Standard & Poor's 500 index lost 3%.


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