Global Stocks Slip Sharply on Economic Fears

Sep. 22, 2011 12:57PM PST

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.

Read the Market Watch report.