- Reuters/Joshua Roberts
- Monday’s market bloodbath in North America is set to extend into Europe on Tuesday.
- Shares in Asia have already followed suit and plummeted, and Europe could be next.
- Futures point to several European indexes opening more than 2% lower.
LONDON – The market chaos that gripped North America on Monday is set to extend into southern Europe on Tuesday, as stock futures indicate further falls in the market.
US stocks were pummelled on Monday, with the Dow Jones Industrial Average falling almost 1,200 points, the biggest single day fall in points terms in its history. The USA’s two other major indexes, the S&P 500, and the Nasdaq, were down 4.1% and 3.8% respectively.
“The sell off in global equities showed no signs of slowing in the Asian session, as equity indices in Tokyo and Sydney dumped. The Nikkei dived over 6% for its worst points fall since 1990. Europe looks set to follow suit, with futures across Europe pointing to multi percentage point losses on the open,” Jasper Lawler, an analyst at London Capital Group said in an early morning email.
As of around 7.15 a.m. GMT (2.15 a.m. ET), German market futures are suggesting a positive open, while those of Italy and Spain point to major losses. Here’s the scoreboard courtesy of Investing.com:
The market’s sudden fall was broadly summarised by John Normand, a strategist at JPMorgan, who wrote to clients on Monday: “Suddenly, inflation has become one of the most-talked about issues in markets, reviving many late-cycle concerns over Fed tightening, corporate margins, volatility, stock/bond correlations and hedging strategies versus asset allocation.”