India's stock market plummeted 9.2% today after market regulators said it may introduce investment controls that would restrict the inflow of capital from overseas funds, The Times reports.
Trading was suspended for an hour as the Bombay stock exchange Sensex index registered its biggest fall in two months.
The fall was a reaction to a statement late on Tuesday by the Securities & Exchange Board of India (SEBI) regulator that it intended to change policies on the issue of participatory notes to foreign investors.
Participatory notes are instruments that allow foreign funds not registered with the market regulator to invest in Indian shares.
THE PRICE OF oil raced towards $88 per barrel yesterday breaking records and putting further intense upward pressure on petrol prices, industry costs and inflation, according to The Guardian.
A dangerous cocktail of rising tension in northern Iraq, strong energy demand and unprecedented weakness in the price of the dollar pushed the price of US crude up $1.84 to $87.97 - its third peak in as many days.
Diesel has swept through the £1 per litre barrier and the Road Haulage Association said last night that truck operators were facing "appalling" pressures since tax duties on fuel were raised 2p on 1 October.
JAPAN AND CHINA led a record withdrawal of foreign funds from the United States in August, heightening fears of a fresh slide in the dollar and a spike in US bond yields, The Telegraph reports.
Data from the US Treasury showed outflows of $163bn (£80bn) from all forms of US investments. "These numbers are absolutely stunning," said Marc Ostwald, an economist at Insinger de Beaufort.
Asian investors dumped $52bn worth of US Treasury bonds alone, led by Japan ($23bn), China ($14.2bn) and Taiwan ($5bn). It is the first time since 1998 that foreigners have, on balance, sold Treasuries.
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