LONDON: Europe’s main stock markets sank at the open on Friday after sharp losses elsewhere, as fears grew over a possible recession in the United States.
London’s benchmark FTSE 100 index lost 0.7 percent to 8,228.98 points.
In the eurozone, the Paris CAC 40 slid almost 1.0 percent to 7,299.35 points and Frankfurt’s DAX shed 1.6 percent to 17,800.93.
European stock markets jump at open
Tokyo led losses across Asia due to a stronger yen and expectations for more Japanese rate hikes, while disappointing data sparked a plunge on Wall Street and fuelled fresh fears of a US recession.
“Sentiment turned on its head as recessionary fears surfaced, following a slew of corporate and economic data which brought into question whether the Federal Reserve is now behind the curve,” remarked Richard Hunter, head of markets at Interactive Investor.
“Even though Fed Chair Powell signalled earlier in the week that a rate cut was likely in September, the concern is now that the Fed may have missed the boat and that the idyllic economic soft landing will not be achieved.”
Comments