Global stock markets fall as growth fears rattle investors
Following sharp falls in the US and Asia stock markets, fears of rising prices and slowing economies have made an impact on UK and European stock markets as well. The FTSE 100 index of leading companies decreased by 2.5% on Thursday and the main stock markets in France and Germany had similar declines.
The US stock market saw their biggest one-day drop since the start of the COVID-19 pandemic on Wednesday. Major US retailers had given poor forecasts that have spooked the markets. Inflation is also on the rise with the UK reaching a 40-year high of 9% in April. There are also concerns that with increased interest rates to balance price rises, economies will begin to slow down. The FTSE 100 dropped 185.81 points lower after dropping Thursday morning, France’s Cac-40 dropped by 2.2%, and Germany’s Dax dropped by 2.1%. Japan’s benchmark index closed down 1.9% and Hong Kong’s 2.5%. The S&P 500 in the United States fell 4% on Wednesday and the Dow Jones Industrial Average fell 3.5%.