Will the looming threat of recession for Europe and U. S into reality? Well, it seems possible now. As markets were today jolted by global cues that the Federal Reserve has indicated "significant downside risks" in the U. S. economy, a sense of panic could be seen in the market.

A significant selling of low shares, commodities and other assets was being observed by market experts, and adding fuel to the fire is that Moody's Investors Service trimmed down credit ratings of three banks, which is expected to show its actual impact very soon.

If a recent survey done by Bloomberg is being concerned, 60% economists feel that the so called "Operation Twist" would not be able to bring improvement in employment sector, which is as of now, facing a 9.1% unemployment rate.

As the report struck the market, the MSCI Asia Pacific Index plunged by 3.5 % in Tokyo, while Euro Stoxx 50 Index futures nosedived by 2.5%.

There were some paltry movements also, as Standard & Poor's 500 Index futures notched down by 0.4%, while Treasury 10-year yields saw a loss of three basis points to 1.82%.

With the way market has reacted, it won't be wrong to say that Fed's plans have spiraled negative headwinds which could be disastrous in the coming time.