Stock Markets Face an Uncertain Week

This week saw stock markets across the globe tumble as billions of pounds were lost of share prices fell.

The stock market 'wobble' began on Tuesday as the Chinese Stock Market fell by a huge 9% following a sell-off of shares by investors. By the close of Tuesday both the UK FTSE and the US Dow Jones had begun to show signs of strain. Both the US and UK markets had fallen by 5% by the end of the week, knocking some £80 billion from the UK FTSE.

Although stock market analysts are still undecided as to the actual cause of the stock market fall (some citing changes to China's taxation rates others the USA's rising mortgage market) all said that this stock market 're-alignment' was expected.

Many of the shares affected (across all Global stock markets) had regained their positions of early 2000; pre internet bubble burst. Added to this, the US economy has slowed to its lowest growth rate for several months.

Analysts are now trying to determine when this stock market downturn will end. Will this drop in share prices end within the next few weeks or is this the start of a long term decline in share prices?

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