PARIS (AFP): The fall down of the sub-prime mortgage market place in the United States and the following international economic recession has forced the sharpest decline in the world stock markets since the end of the Internet fizz in 2001-2002.

During the last year, forthcoming indices have lost by 12 to 25 % of their value.

The prevailing drop has been in Tokyo, 23.6 %, subsequent to Paris, 20.7 %, the Dow Jones Industrial Average in New York, 14.8 %, the US Standard and Poor’s 500 index, 13.6 %, Frankfurt, 12.2 %, and London, 12.1 %.

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NEW YORK: Wall Street stretched its sprawl into yet another week Monday because shareholders anguished about protected network system for mortgage financiers Fannie Mae and Freddie Mac won’t go on facing more problems in the financial markets.

The Treasury and the Federal Reserve stressed on Sunday they would assist Fannie Mae and Freddie Mac if looked-for. Wall Street was on the rim about the safety of the government-chartered companies as they mutually hold or rear $5.3 trillion of mortgage balance due, about half the outstanding mortgages in the United States.

Washington’s strives to hold up self-reliance in Fannie Mae and Freddie Mac at times supported those shares Monday but problems increased in other corners of the financial sector.

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After rising oil prices and persisting worries about the financial sector, stocks slowed down on Monday.

The reason behind rising price was the disappointment that Saudi Arabia was not increasing oil production more than 200,000 barrels a day. On the New York Mercantile Exchange, light, sweet crude oil settled at $ 136.74 per barrel with the increase of $1.38.

There was a rise in energy companies but airlines and financials are the sectors that recoded massive losses.

Now investors are focusing on the price of oil and two-day’s federal meeting that will held on Wednesday. Many investors are expecting central bank to continue its main federal funds rate on hold.

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