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World stocks took a hit on Thursday following the Fed’s announcement of Operation Twist and unfavorable economic data from the Eurozone.
The markets took a plunge on Thursday following US Federal Reserve’s Wednesday warning of “significant downside risks” in the economy and its announcement to launch a $400b program Operation Twist, in lieu of a third round of quantitative easing.
Also, a preliminary purchasing report released by Markit showed contraction in the Eurozone with a reading of 49.2. The decline hints at a recession, and is the first slip since the Eurozone bounced back from recession in Q3 of 2009.
For more on this story, read the Wall Street Journal report.