Market caught in a downward cycle

REVIEW: Stock markets worldwide went through yet another bloodbath, as US Federal Reserve's warning of a “significant downside risk” to the world's largest economy exacerbated fears of investors who were already jittery about the worsening eurozone debt crisis.

The local stock market was sent to depressed levels, as foreign investors liquidated their assets and the benchmark FBM Kuala Lumpur Composite Index (FBM KLCI) staged a deep plunge.