Europe Stocks Plummet to their Lowest Level in 20 Months amid a Dramatic Global Sell-off for Equities

Europe Stocks

Europe stocks went sharply down on Thursday morning with mining, tech, and luxury firms leading the losses and lowered the pan-European Stoxx 600 by 1.8% during mid-morning deals. Steep losses in the United States, following a dramatic sell-off for equities on Wall Street had prompted Europe markets to be slumped to their lowest level in 20 months.

Global equity market have lowered amid heightened fears over an estimated slowdown in the global economic growth and increasing interest rates. According to CNBC news, earlier this week, the International Monetary Fund (IMF) had warned that simmering trade tensions between the U.S. and trading partners have started to impact the world’s economic activity; it could lead to sharp decline in the risk sentiment and trigger a broad-based correction in capital markets.

On the hand, U.S. Treasury yields inched lower in trading session on Wednesday, after the benchmark reached multi-year highs this week, which is not seen since 2014.

Subsequently, most of the Europe stocks trade were low on Thursday with Britain’s WH Smith at the bottom of the index, following the company’s announcement of newer plans to reorganize its high street stores. Meanwhile, shares of London-listed stock dropped down over 12% on the news. FTSE 100 index of leading UK shares was plummeted by 1.7% at 7023.

Dialog Semiconductor, a UK-based manufacturer of semiconductor-based system solution, acquired the top of the index. The company’s share boosted after making a $600 million deal with tech-giant Apple.

Trump Called the U.S. Federal Reserve ‘Crazy’

On Wednesday, President Donald Trump criticize the central Bank for increasing the interest rates with the latest hike of 0.25% last month. Trump told reporters, “The Fed is making a mistake and I think it has gone crazy.” He also commented on the plunge in markets, stating that stock market sell-off was a long-awaited correction.

Back in Europe, Brexit continues to be an area of focus for the markets. Michel Barnier, chief Brexit negotiator of the European Union said, with U.K remaining in the customs, it could avoid hard border between the Northern Ireland and Irish Mainland. Following his comment, both British pound and euro bounced against dollar and were up 0.27 and 0.4% respectively.

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Ganesh Rajput

Ganesh Rajput

Ganesh’s extensive experienced in the field of market research reflects in the way his articles offer readers sharp insights on the latest developments across major industry verticals. His forte lies in churning out analytical commentaries on the evolving nature of various consumer-oriented industries.

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