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4/18/10

World Economy: The dominoes are tumling in the US and China while Goldman Sachs gets sued by US Government for fraud

The benchmark MICEX Index dropped by the most in more than two months Friday after oil fell and China's moves to cool real-estate speculation quelled appetite for riskier assets.
Stocks fell to their lows of the day after the U.S. Securities and Exchange Commission sued Goldman Sachs Group for fraud tied to packaging and selling collateralized debt obligations. Rosneft and Gazprom both fell by more than 2 percent. The 30-stock MICEX Index slumped 2.3 percent to 1,495.08 at the close in Moscow, paring its weekly gain to 0.1 percent.

"Oil is lower, and there are external factors such as the fear China is curbing its growth, which will hit a natural resource economy like Russia," said Andrei Kuznetsov, a strategist at Troika Dialog. China on Friday raised requirements for down payments on some home purchases, fueling speculation that it might tighten policy further to cool growth, slowing a global recovery.

For more: MICEX Falls on Oil Price Drop | Business | The Moscow Times

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