Article: World stocks slump as Fed pulls back stimulus

European and U.S. stocks slumped Thursday after the Federal Reserve said it is scaling back emergency lending programs as well as some stimulus efforts.

U.S. data showing a drop in existing home sales also reminded investors that the recovery in the global economy is likely to be slow.

Germany's DAX closed down 1.7 percent at 5,605.21, Britain's FTSE 100 lost 1.1 percent to 5,079.27, and France's CAC 40 fell 1.7 percent to 3,758.36. All had been higher around midday.

In New York, the Dow Jones industrial average shed 0.5 percent to 9,702.83 and the Standard & Poor's 500 index lost 0.9 percent to 1,051.56.

Investors were spooked by an announcement by the Fed ...

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