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Stocks tumble after global sell-off

Global stock markets mostly fell Wednesday as initial euphoria over an interest rate cut by China the day before succumbed to lingering worries over longer-term problems with its economy.

European shares fell back from their surge the day before following Beijing's announcement late Tuesday that it was easing monetary policy to help stabilize gyrating markets and counter short liquidity.

Markets have been volatile for weeks on deepening unease over the ramifications of slowing growth in China, the world's second-largest economy and the driver of much of global growth over the past decade.

The apparent inability of Chinese regulators to calm the markets has spooked investors already fretting over when the U.S. Federal Reserve will raise interest rates.

The Fed has signaled it could begin raising its key interest rate from near zero for the first time in nearly a decade as early as this year. But it is not expected to deliver a policy update until it wraps up a meeting of policymakers in mid-September.

In a last-minute sell-off Tuesday, the Dow Jones industrial dropped 1.3 percent, extending Wall Street's losing streak to six days, the longest such stretch in more than three years.

The Dow had surged more than 400 points Tuesday after China cut its interest rates for the fifth time in nine months in a renewed effort to shore up growth. The central bank also increased the amount of money available for lending by reducing the reserves banks are required to hold. (AP)


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