Global Stock Markets Fall Sharply

Global markets tumbled dramatically on Monday as concerns about increasing inflation and a slowdown in China’s export growth fueled worries about the global economy’s health.

Stocks in Asia-Pacific markets, Europe, and the United States fell as investors worried about slowing global growth when central banks boosted interest rates to combat inflation.

The FTSE 100 slid 2.32 percent or 171 points to 7,216 at the close of trading on Monday in London; the lowest level in eight weeks, with mining companies among the losers. The Nikkei 225 index in Japan had fallen 2.5 percent earlier.

European stocks had fallen to a two-month low at the closing of trading, down 2.9 percent. The S&P 500 index fell 3.2 percent on Wall Street in New York, its lowest level, following its longest weekly losses in more than a decade. The tech-heavy Nasdaq plummeted 4.29 percent as investors sold off previously hot tech stocks.

Commodities fell, with copper prices in London falling to their lowest level since mid-December, at $9,160 (£7,440) per tonne. Aluminum, zinc, nickel, lead, and tin prices have all fallen; the reason behind this was concerns that China’s trade restrictions are reducing manufacturing production.

Emerging market equities fell to their lowest level since June 2020; China’s faltering economy compounded the effects of rising global interest rates and the continued disruption caused by the Ukraine war.

Li Keqiang, China’s premier, cautioned that its employment situation was “complicated and terrible”; it urged government agencies and regions to prioritize steps to sustain and maintain jobs. It fueled concerns that China’s economic restrictions have a negative impact.

Fresh selling of US government bonds also pushed up the yield on the 10-year Treasury note to its highest level since November 2018. When prices fall, yields climb.