European markets sink

26 March, 2019 12:00 AM printer

LONDON: European stock markets fell further at the open on Monday, as a global selloff gathered pace on mounting fears of a sharp economic slowdown.

In initial trade, London’s benchmark FTSE 100 index slid almost 0.6 percent to stand at 7,166.56 points compared with Friday’s closing level.

In the eurozone, Frankfurt’s DAX 30 index shed nearly 0.4 percent to 11,323.20 points and the Paris CAC 40 dived 1.1 percent to 5,211.76, reports AFP.

Asian equity markets also plunged Monday after a fierce pre-weekend sell- off on Wall Street fuelled by concerns about the global economy and a possible recession in the United States.

Economic gloom had descended on world markets on Friday, as monthly US, French and German manufacturing indices all fell.

That rattled investors who were already uneasy after a surprisingly weak outlook from the US Federal Reserve. “Concerns over the health of the global economy heat up at a rapid pace,” said FXTM analyst Jameel Ahmad.

“Perhaps what is even more worrying for investor sentiment is that the US Treasury yield curve has inverted for the first time since 2007.

“This development will psychologically encourage further anxiety and rocket fears that the global economy is heading for another downturn, if recent economic releases across the globe have not already provided indications that the downturn has arrived.”