Global stockmarkets slumped overnight

Global stockmarkets slumped overnight, as the surprise German strike against speculative trading panicked nervous investors instead of reassuring them.

Top economist Nouriel Roubini, who was one of the few experts to predict the global financial crisis, warned that the debt drama set off by Greece was likely only the tip of the iceberg.

A fresh crisis could occur "not just in the eurozone but in the UK, US, or Japan," Roubini said in a speech at the London School of Economics.

"The next stage of the crisis could be a sovereign debt crisis that could lead to a double-dip recession."

In Asian trade on Wednesday, Tokyo lost 0.5 per cent with Hong Kong down 1.8 per cent while Sydney fell to its lowest level in nine months, giving up 1.9 per cent.

AFP

http://www.smh.com.au/business/markets/angelas-ashes-desperate-merkel-fuels-slump-in-global-markets-20100520-vfl2.html