Hemorrhaging on Wall Street goes on for a second day

Published: Sept. 22, 2011 at 1:12 PM

Demonstrators march though the Financial District under a heavy police presence as they protest the economic system on September 20, 2011 in New York City. People are taking part in the multi-day protest organized by "Occupy Wall Street" by camping out in near-by Zuccotti Park and marching through the financial district as people make their way to work. UPI/Monika Graff�

NEW YORK, Sept. 22 (UPI) -- A punishing sell-off on Wall Street went to a second day Thursday as investors rejected a U.S. Federal Reserve stimulus measure.

The Fed's announcement that it would begin an operation twist, exchanging $400 billion in short-term securities for an equal amount of long-term bonds, sent shivers through markets Wednesday afternoon. The Dow Jones industrial average lost 240 points between the afternoon announcement and the close of trading.

As markets opened in Asia Thursday, the hemorrhaging continued. Markets gave up 4 percent in Hong Kong and India and 2.7 percent in China. In Australia, the S&P/ASX 200 index dropped 2.6 percent.

In midday trading in Europe, stocks were off 4 percent in Britain, Italy, France, Germany, Sweden and Belgium.

In early afternoon trading on Wall Street, the DJIA shed 372.93 points or 3.35 percent to 10,751.91. The Standard & Poor's 500 lost 34.22 points or 2.93 percent to 1,132.54. The Nasdaq composite index lost 68.26 points or 2.69 percent to 2,469.93.

The benchmark 10-year treasury rose 31/32 to yield 1.764 percent.

The euro fell to $1.3486 from Wednesday's $1.3572. Against the yen, the dollar fell to 76.42 yen from Wednesday's 76.44 yen.

In Tokyo, the Nikkei 225 index shed 2.07 percent, 180.90, to 8,560.26.

In London, the FTSE 100 index dropped 4.67 percent, 246.80, to 5,041.61.

Overnight, the price of November contract West Texas Intermediate crude oil priced in New York dropped 4 percent to $81.13 per barrel. The price of gold plummeted, listed as dropping $82.70 to $1,725.40 on the Comex division of the New York Mercantile Exchange.

Source: http://www.upi.com/Business_News/2011/09/22/Hemorrhaging-on-Wall-Street-goes-on-for-a-second-day/UPI-15311316701804/

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