Renewed pessimism over global economic outlook surrounded financial markets. Worries over the European banking sector were triggered by news that the ECB had lent US$ 500M to a European bank and that the Fed was examining the impacts of contagion of Eurozone’s sovereign crisis on the US banking system. US economic indicators turned out to be disappointing with initial jobless claims surprisingly rising last week, the Philly Fed index slumping in August and existing home sales contracted in July. Wall Street dived with DJIA and S&P 500 plunging -3.68% and -4.46% respectively. European bourses also tumbled 4.5-5.8%.
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Risk Off amid Renewed Banking Worries in Europe and Disappointing Data in US
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