Business Standard

Asian, European mkts fall as US credit crisis deepens

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Press Trust of India London

Tremors of deepening US credit crisis were felt in Asian and European markets today with the benchmark indices sliding as much as 3 per cent.     

The US regulators have seized the 119-year-old Washington Mutual and sold its banking operations to JPMorgan Chase for $1.9 billion.     

Also, the high-level meeting of the probables for the post of US President called by George Bush to work out a compromise on the $700-billion bailout package failed to make any headway on Thursday.     

Reacting sharply to the Thursday night's developments in the US, Japanese market declined with Nikkei 225 falling one per cent while Hang Seng slipped by 1.33 per cent.     
Similarly, Indian markets reacted negatively and the Sensex closed at 13,102.18 points, down by 3.28 per cent.     

 

In the European market, London Stock Exchange's FTSE 100 index was down nearly 2 per cent at 5,098.41 points in the afternoon trade.     

Negative sentiments were also seen in most of the bourses worldwide including Australia, South Korea and Singapore.     

Meanhile, the high-level meeting failed with Republicans denouncing the strategy as ill-conceived and Democrats accusing the other party of non-cooperation.     

Washington Mutual, also popularly known as WaMu became the latest casualty of the financial turmoil after the federal regulator Federal Deposit Insurance Corporation (FDIC) sold its banking operations for around $1.9 billion to JPMorgan Chase.

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First Published: Sep 26 2008 | 6:55 PM IST

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