Stocks slump as troubles mount

Global stockmarkets have plummeted amid an increasingly bearish outlook on the world economy, and the ongoing struggles in the eurozone.

Stockmarkets have suffered the worst selling and volatility spell since the panic of late 2008. By Monday night, the FTSE All-World Index had lost 15% in just over a fortnight. Major indices, including the FTSE 100, slipped into bear market territory, down by 20% from their latest peak in May. The S&P fell by 6.6% on Monday. Stocks steadied after US Federal Reserve chairman Ben Bernanke promised to keep interest rates at near 0% for two years and hinted at more quantitative easing, or money printing.

Ratings agency Standard & Poor's decision to downgrade the US's triple-A credit rating spurred selling, as did the endless euro crisis. The European Central Bank bought some time by buying Italian and Spanish bonds.

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