Global stock markets fell Thursday on fears of rampant inflation and a widening recession.
Stocks in Frankfurt, London and Paris each fell about 1.5%, while oil prices fell on demand concerns.
Losses continued across Asia as investors braced for further rate hikes and tried to quell runaway inflation, which could derail economic activity.
European stocks also fell on Wednesday as record-high eurozone inflation fueled concerns that borrowing costs could rise further.
The European Central Bank is set to release its latest monetary policy decision next Thursday after raising interest rates for the first time in a decade in July.
‘Tough times ahead’
“The market has not been able to stop the recent losing streak, and investors are still having a tough time,” said Richard Hunter, an analyst at Interactive Investor.
“At the center of our concerns now are fears of a US recession and a beleaguered China.
“The near-term outlook is not good as the world’s two largest economies are under pressure.”
Asian stocks fell further on Thursday as traders continued to digest reduced factory activity in the big economy China.
Shanghai also fell on news that the Chinese city of Chengdu would effectively lock down about 16 million people to contain the Covid-19 outbreak, possibly another blow to the sluggish economy. there is.
Wall Street fell Wednesday as Treasury yields, a key indicator of future interest rates, rose further.
Another Fed official suggested banks were determined to keep raising borrowing costs, reflecting recent comments from Fed President Jerome Powell that he would never stop fighting inflation.
US interest rates are currently between 2.25% and 2.5%, raising hopes of a massive 75 basis points hike at the third consecutive meeting later this month.
Friday’s government employment report will be watched closely by traders for ideas on the bank’s next move.
The prospect of further US interest rate hikes continued to push the dollar higher, reaching 140 yen for the first time since 1998.
The dollar is also at its strongest level against the pound since the height of the 2020 pandemic, with the pound buying below $1.16.
– Key figures around 1040 GMT –
London – FTSE 100: down 1.5% at 7,175.82 points
Frankfurt – DAX: down 1.3% at 12,673.46
Paris – CAC 40: down 1.5% to 6,032.09
EURO STOXX 50: down 1.4% to 3,467.88
Tokyo – Nikkei 225: down 1.5% to 27,661.47 (close)
Hong Kong – Hang Seng Index: down 1.8% to 19,597.31 (close)
Shanghai – Overall: down 0.5% to 3,184.98 (close)
New York – Dow: down 0.9% to 31,510.43 (close)
EUR/USD: down to $1.0011 from $1.0054 on Wednesday
GBP/USD: down from $1.1622 to $1.1564
EUR/GBP: rose to 86.56p from 86.50p
Dollar/yen: 138.96 yen → 139.34 yen UP
West Texas Intermediate: down 2.1% to $87.64 a barrel
Brent North Sea Crude: down 2.5% at $93.22
