EU states pump money into banks

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Source: CCTV.com | 10-07-2008 09:06

European states continue to pump billions of US dollars into banks to keep them afloat.

Brokers are seen at the stock market in Frankfurt, central Germany, Monday, Oct. 6, 2008. European stock markets plunged Monday as government bank bailouts in the U.S. and Europe failed to alleviate fears that the global financial crisis would depress world economic  growth.(AP Photo/Michael Probst)

They're trying to reassure depositors their money is safe, and also avert a panic that has frozen lending across the world.

Meanwhile, European and Asian stock markets have plunged again. Government bank bailouts in the US and Europe have failed to alleviate the global financial crisis.

And Wall Street fell even further on Monday, with the Dow Jones Industrial Average sinking below 10,000 for the first time in four years, and the crude oil fell down to 90 US dollars per barrel.

The European Central Bank, the Bank of England and the Swiss National Bank offered more than 60 billion dollars to markets on Monday, to try to keep the financial sector flush with cash.

The Swiss National Bank said its overnight dollar offerings are also continuing. But it did not immediately disclose the details of its offer, in keeping with standard policy.

The ECB's website says the maximum bid for its offer is 5 billion US dollars, while the minimum is 5 million dollars.

The Bank of England's website says it is offering money to a maximum of 10 bidders in multiples of one billion dollars. The minimum bid is 5 million.

European markets plunged in Monday morning trading. Britain's benchmark stock index, the FTSE 100, lost 4.42 percent to 4,760.

The declines were led by the banking industry, with the mining and oil industries also suffering drops. HBOS PLC's share price dropped 15.7 percent, while the Royal Bank of Scotland Group PLC fell 13.6 percent.

Across Asia, all markets were in the red.

Tokyo's Nikkei 225 index fell to its lowest level in four and a half years, sinking 4.25 percent to 10,473.

Hong Kong's Hang Seng index slid 4.3 percent, to 16,927.

Trading in the Chinese mainland resumed after a week-long holiday break, with the benchmark Shanghai Composite Index sinking 5.23 percent to 2,173.

Key indices in Australia, New Zealand, South Korea, Singapore, Malaysia and Thailand also fell sharply. Indonesia's key index plunged more than 5 percent.

Editor:Zhang Pengfei