Amidst the economic slowdown of China and US, the stocks of Germany have further impacted the world economy as its market today tumbled lower than expected. Before the news of Germany’s shares slopping down, the US dollar was doing quite well.

With hope of recovering the country from the financial crunch, the Fed decided to launch a “Operation Twist” program. The objective of the program was set at lowering the borrowing cost, as Fed believed by doing so the country could be relieved from the turbulent financial economy.

However, before the program could be launched, the Fed took a step back as it is feared that with launch of the program, global downturn will become difficult to be cured. The woes of the Fed were echoed by HSBC’s China Flash PMI when it revealed that because of the global financial turmoil, the economy of the developing countries was witnessing a contraction.

Now, questions are being raised as to whether the European crisis will ever be solved. The stocks on the European market are on continuous decline. It has been reported that in this year the European stocks has witnessed fall of 21%.