Amidst concerns that the U.S. economy may be about to slow down, European stock markets saw sharp declines on Monday, following sharp declines in Asia.
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The CAC-40 sank 2.2% in Paris, the DAX declined 2.4% in Frankfurt, and the FTSE 100 index dipped 2.1% in London.
Asian markets crashed earlier, with Japan’s Nikkei 225 falling 12.4%, or 4,451 points, in the worst point decline in history.
It occurs after dismal jobless figures from the US on Friday raised questions about the biggest economy in the world.
Since the Bank of Japan hiked interest rates last week, the yen has been rising vs the US dollar, increasing the cost of Tokyo stocks for overseas investors.
Hong Kong, Shanghai, Taiwan, South Korea, India, and Australia all had their stock markets crash.
Rumors that the US economy is slowing down have been stoked by weaker-than-expected economic data.
In contrast to other central banks like the Bank of England, the US Federal Reserve refrained from lowering interest rates last week.
Although many believe the UK economy is improving in light of the Bank of England’s first-interest rate reduction in more than four years, there are concerns about the US economy that can spook markets everywhere.
There has also been concern that shares in technology companies, such as those focused on artificial intelligence (AI), have been overvalued and are now facing difficulties.
Intel announced major layoffs last week as well as disappointing financial results, and there is s
