impact Debt crisis in Europe, stock market fall in US, Asia

impact Debt crisis in Europe, stock market fall in US, Asia ; Debt crisis in Europe triggered fall in stock markets both in the United States and Asian countries. The financial and energy companies took the drubbing. Investors were jolted by the weak economic datas.

Dow Jones Industrial Average fell by 1.20 per cent, Standard & Poor fell by 1.82 per cent Nasdaq Composite lost 2.0 per cent. Citigroup fell 5.3 per cent, JP Morgan chase declined 3.2 per cent and Bank of America was down 3. 27 per cent.

Europe did not escape the heat as Milan Stock fell by 3.8 per cent, FTSE loss was 1.03 per cent, CAC in Paris fell by 2.71 per cent and DAX in Frankfurt was down 2.33 per cent. Investors fear was further heightened by the news that inflation in China the strongest economy in the world has soared to a three year high. Contagion is the word in everybody's lips as the eurozone crisis threatens to envelop all.

The European Union (EU) debt crisis, the US debt ceiling and the global economic slowdown have contributed to investors fear.

Euro dropped to a seven-week low against US dollar and record low against Swiss franc as fears over sustainability of Italian debt escalated, an observer said.

Concerns that Italy may be the next eurozone economy to become embroilled in debt crisis is growing.

And on the international plane, forces sympathetic to Bashar al-Asad stormed the US and French embassies in Damascus protesting the visit by their ambassadors to the rebel held areas. The security forces at the both the embassies beat back the protesters.

France and the US have been critical of Syria's brutal attack on pro-democracy activists. Both France and the US want Asad should immediately step down. The US Secretary of State, Hillary Clinton said Asad has lost legitimacy to govern. Syrian foreign ministry summoned both the ambassadors and condemned the visit.

In another development, Israeli Parliament yesterday passed a law banning criticism of new settlements in West Bank and any demand for independence of Palestine.

Civil rights groups and those pressing for independence of Palestine called the law anti-democratic and flagrant violations of freedom of expression.

The law passed by 47 to 38 votes relates to calls for economic, cultural or academic boycotts of Israel, its institutions or any area under its control.

The law was viewed as further erosion of democratic values in Israel.