Interest Rate, Recession Concerns Depress Global Markets
Markets across the world continue sharp drops on concerns about regional recessions, slow growth in formerly fast-growing regions and worries that rising rates will undercut the value of equities. Today, the major culprits were a drop in China's PMI and PMI data from Europe, which were slightly better than expected but still depressing.
China's PMI data and the value of the yen helped press the Nikkei down 3.72%. The report on the EU27 weighed on stocks there. U.K. stocks continued a four-week downturn. The FTSE, DAX and CAC 40 were off between 0.4% and 0.7%.
According to MarketWatch:
European stock markets opened with broad-based losses on Monday, after a data release on Chinese manufacturing showed the sector contracted more than initially estimated in May. The final version of HSBC's Purchasing Managers' Index fell to 49.2 from a preliminary reading of 49.6. Meanwhile, the official version of the PMI rose to 50.8 from 50.6. Asian stock markets dropped, further adding pressure on European equities.
Filed under: 24/7 Wall St. Wire, Economy, International Markets