Stocks tumble on growth fears
Global markets see declines as fears grow over the strength of the recovery.
June 30, 2010 9:09 by Samuel Potter
Stock markets across the world saw falls yesterday as concern spread over the strength of the economic recovery, reports the National.
Fears over the possibility of a “double dip” recession prompted a negative investor reaction; in the US money swung away from big companies and towards the relative safety of the dollar and Treasury bonds.
The movements come off the back of fears over slowing growth in China, and the ending of the European Central Banks 12 month liquidity program, which has propped up EU banks.
Kelli Hill, portfolio manager at Ashfield Capital Partners, said: “People are very concerned about the potential of a double-dip.
Perception is greater than reality, especially in the stock market, and it’s the perceived notion of a double-dip that’s weighing on the market today. The likelihood of it is probably fairly small but that doesn’t prevent days like this.”
The BBC also reports that Asian stocks have continued the slide on opening today.