Stock markets in both Europe and Asia fell dramatically today, as investors fear that the global economy is heading for a prolonged slump. The news comes after the US stock market (Dow Jones) fell 5% on Wednesday to its lowest level in over 5 years.
Amongst the biggest affected areas were mining shares, as investors expect the demand for raw materials such as steel will fall as the global economy slows.
London’s FTSE100 index fell by 1.6% in the early trading session, with the German Dax Index falling 3.4% and the French Cac40 index slumping by 2.8%. Asian stocks also fell, with Japan’s Nikkei Index finishing the day 6.8% lower, and Hong Kong’s Index down over 4%.
Recent data figures suggest that Japan, Hong Kong and Singapore are already in a recession, while fears that the US is also heading for a recession was enough to send share prices tumbling.
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