Turmoil in the markets is continuing by Martina Janeckova

Wall Street plunged again on Wednesday Sept. 17 as the government’s bailout of insurer American International Group Inc. failed to eliminate investors’ anxieties about the financial system. Federal Reserve gave a two-year, $85 billion loan to AIG in exchange for a nearly 80 percent stake in the company, but this move didn’t calm the market. Wall Street had feared that AIG would follow the investment bank Lehman Brothers Holdings Inc. into bankruptcy. “People are scared to death,” said Bill Stone, chief investment strategist for PNC Wealth Management. “Who would have imagined that AIG would have gotten into this position?” “No one's going to believe anybody now because AIG said they were OK along with everybody else,” Stone said. The Dow Jones index fell 449.36, or 4.06 percent, to 10,609.66, finishing not far off its lows of the session. Broader stock indicators also fell sharply on Wednesday. The Standard & Poor's 500 index dropped 57.21, or 4.71 percent, to 1,156.39, while the Nasdaq composite index fell 109.05, or 4.94 percent, to 2,098.85. The dollar was lower against other major currencies. Gold for December delivery soared $90.40, or 11.6 percent, to $870.90 an ounce in after-hours trading on the New York Mercantile Exchange after jumping $70 to settle at $850.50 in the regular session. Crude oil settled at $97.16 a barrel on the Nymex after the government reported a drop in domestic crude and gas inventories. Japan's Nikkei stock average rose 1.2 percent after AIG’s rescue, but Hong Kong's Hang Seng index lost 3.6 percent. Britain's FTSE 100 fell 2.25 percent, Germany’s DAX index fell 1.75 percent, and France’s CAC-40 fell 2.14 percent.

by Martina Janeckova for PocketNews (http://pocketnews.tv)

PocketNews is a new real-time news broadcaster delivering the latest and hottest news right to your pocket ! With global clients who want to be kept up to date, PocketNews is everyone's way of keeping in touch with the World.<br><br><font size=2>These news are original content from young talents around the world and are selected for you by Chris Cantell.</font><br>

edited by Beata Biskova