LONDON: World stock markets fell on Thursday, weighed down by the mining and travel sectors, while traders also reacted to concerns about a possible US rate hike next month.
US shares opened lower as London's benchmark FTSE 100 index led the European bourses in mid-afternoon losses, down 1.3 percent compared with Wednesday's close.
Frankfurt's DAX 30 index slid 1.1 percent and the Paris CAC 40 nudged 0.6 percent lower.
In foreign exchange, the euro was down against the dollar after minutes from the US Federal Reserve's April policy meeting suggested an interest rate hike next month was a much more serious possibility than the market believed.
"The FTSE 100 is trading sharply lower... after last night's minutes showed a notable hawkish shift amongst the voting members, bringing the possibility of a US rate hike in June back to the table," said David Cheetham, market analyst at brokerage XTB.
The US central bank has repeatedly stated its intention to continue raising rates this year after December's first hike in nine years.
That prospect has already tightened money conditions for borrowers around the world and strengthened the dollar.
The British pound meanwhile reached a three-month high against the euro on Thursday thanks to polls showing the Remain camp in the lead ahead of the June 23 referendum on Britain's EU membership.
Sterling struck 76.49 pence against the euro at one point, its highest level since early February, with support also from better-than-expected British retail sales data, analysts said.
On the corporate front, shares in travel operator Thomas Cook plunged almost 20 percent after the British company revealed a drop in summer bookings, in particular to key market Turkey, following recent deadly attacks in the country.
In mid afternoon trading, Thomas Cook shares were down 19.4 percent at 72.10 pence on London's second tier index.
Adding to the unease was news that an EgyptAir flight had vanished from radar screens Thursday en route from Paris to Cairo with 66 people on board.
Egypt's aviation minister said a "terror" attack was a more probable explanation for the disappearance than technical failure.
"The increased potential for a June rate-hike in the US... has sent a ripple of fear through the market as a whole, whilst concerns over the missing EgyptAir plane are continuing to weigh on the travel sector," said Spreadex analyst Connor Campbell.
Elsewhere, the share price of German chemicals and pharmaceuticals giant Bayer slumped more than nine percent to 87.55 euros after the company said it was in merger talks with US agricultural firm Monsanto.
After Wall Street opened, shares in Monsanto surged, while solid earnings sent shares of Wal-Mart Stores higher.
Asian stock markets meanwhile closed mostly lower on Thursday, with energy and commodity firms taking a beating.
News that a US interest rate hike was increasingly likely put particular pressure on energy and commodity shares, as oil prices slumped in response to the greenback's surge.
A stronger dollar puts downward pressure on oil, which is traded in the US currency, as it makes crude more expensive for buyers holding other currencies.
- Key figures around 1340 GMT -
===============================
London - FTSE 100: DOWN 1.3 percent at 6,086.60 points
Frankfurt - DAX 30: DOWN 1.1 percent at 9,833.69
Paris - CAC 40: DOWN 0.6 percent at 4,294.91
EURO STOXX 50: DOWN 0.8 percent at 2,932.50
New York - Dow: DOWN 0.3 percent at 17,476.22
Tokyo: Nikkei 225: FLAT at 16,646.66 (close)
Shanghai - Composite: FLAT at 2,806.91 (close)
Hong Kong - Hang Seng: DOWN 0.7 percent at 19,694.33 (close)
Dollar/yen: DOWN at 109.94 yen from 110.20 yen
Euro/dollar: DOWN at $1.1204 from $1.1218 on Wednesday
Comments
Comments are closed for this article.