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Friday’s Selling Frenzy: DOW Plunges more than 300 POINTS – Fox Business

September 9, 2011

Friday’s Selling Frenzy: Wall Street Crushed by Euro Fears

By Adam Samson

Published September 09, 2011 | FOXBusiness

FOX Business: The Power to Prosper

Wall Street sustained deep losses to cap a highly-tumultuous trading week after a flurry of unnerving headlines on Europe’s sovereign debt crisis and ongoing economic concerns set off a global flight to safety.

Today’s Markets

The Dow Jones Industrial Average plunged 304 points, or 2.7%, to 10,992, the S&P 500 tumbled 31.7 points, or 2.7%, to 1,154 and Nasdaq Composite slumped 61.2 points, or 2.4%, to 2,468. The FOX 50 fell 21.5 points to 833.

The euro zone debt crisis has been a major focus on Wall Street on fears that severe weakness in the financial system there may spillover to companies across the Atlantic.  In fact, the markets have been particularly affected by even small developments and setbacks there.

Media reports that Germany is preparing to protect European banks from a potential Greek bailout roiled global markets and added to already gloomy developments earlier in the session.

European Central Bank Executive Board Member Juergen Stark plans on resigning by the end of the year once a replacement is found. The ECB says the retirement is for personal reasons, but a report by Reuters suggests the move is actually a result of a disagreement over the central bank’s bond-purchasing program.

There were also discussions among the German and French officials about a financial transaction tax that would affect all types of instruments including equities and bonds.  The U.K., which houses the region’s largest financial center, has opposed such a move.

The U.S. dollar soared 1.1% against a basket of world currencies to the highest level since March, while the euro tumbled 1.4% against the greenback. Meanwhile, the risk aversion trade was back on the table.  The yield on the benchmark 10-year Treasury bond fell briefly to a record low of 1.896% as traders have piled into the shelter of U.S. debt.

via Friday’s Selling Frenzy: Wall Street Crushed by Euro Fears | Fox Business.

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