Stocks in Europe and Asia Fall Significantly

Recently, stocks have fallen significantly in both Europe and Asia . Some lay blame on the skyrocketing prices of oil as being the cause. Earning prospects of many companies globally, particularly in car manufacturing and airline businesses, has reduced significantly because of this.


On Wednesday, Europe's Dow Jones Industrial Average closed more than 20 percent below, compared to its 2007 peak level.

General Motors, which fell below $10 per share, is regarded to be one of the most important concerns for the index.

The MSCI World Index lost in London as most industry groups have declined; U.K.'s FTSE 100 fell as low as 5,358.50.

Stocks in Japan also fell for the 11th straight day.

The major car manufacturers such as Daimler, Toyota, and Hyundai Motor Co. have also been affected.

This recent market slowdown is expected to lower global economic activities to some extent.