US bailout plan rejected lowering European shares
The US House of Representatives yesterday rejected a 700 billion dollar rescue plan for the US financial system, sending share prices crashing particularly in UK and Europe but also hit other major markets. Asian shares have also taken a nose dive in early trading today.
As news of the rescue plan failure hit Wall Street, the Dow Jones saw its largest daily points fall in history and a statement by the US Treasury urged for a new deal to be agreed. It is unlikely that a new deal will be brokered till the weekend, with Congress not meeting again till Thursday, so a week of unrest on the stock markets is likely.
Analysts are warning that without a rescue plan, there is always the danger of more financial institutions going bust.
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