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Wall St spirals lower after Greek referendum call

..Wall St spirals lower after Greek referendum call
By Rodrigo Campos | Reuters – 1 hr 17 mins ago

NEW YORK (Reuters) – Stocks tumbled about 2 percent on Tuesday after the deal to rescue Greece and prevent a wider sovereign debt crisis was thrown into disarray.

Adding to the gloomy sentiment, factory activity in Asia’s big export economies slowed to their weakest rate in nearly three years in October, while UK manufacturing suffered a sharp decline, reigniting fears of a global slowdown.

Greek Premier George Papandreou said he will put the nation’s bailout deal through a referendum, potentially undoing a long-awaited agreement struck last week and sending European stocks down 3.3 percent. The region’s bank shares fell 6.4 percent.

“European leaders feel as if they’ve been blindsided by Papandreou,” said Chad Morganlander, portfolio manager at Stifel, Nicolaus & Co in Florham Park, New Jersey.

He said the move underscored the current risk in Europe and threw a wrench into the region’s stability plan.

U.S. bank shares were lower, with the KBW bank index off 3 percent and Morgan Stanley down 7.4 percent to $16.33.

http://news.yahoo.com/futures-point-wall-street-extending-decline-095920138.html

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