- Markets Insider
- Global market sell-off resumed in the USA on Thursday, with US stocks entering a technical correction.
- That sell-off moved to Asia overnight, with China’s benchmark Shanghai Composite falling 4%.
- Early on Friday, European stocks avoided the sell-off, but as the day progressed losses increased.
LONDON – European equities are seeing large losses in Friday afternoon as the renewed sell-off in the global stock market makes its way to the continent.
After a mid-week pause, stocks in North America and Asia resumed their slide on overnight, with major US bourses tumbling as much as 4% to enter the territory of a technical correction.
The benchmark S&P 500 closed 10.4% below its record high on January 26. It’s the fourth correction for the index since the bull market began in March 2009, according to Bespoke Investment Group.
Once again, North America’s slump shifted to Asia, with Chinese stocks in particular taking a pounding.
The benchmark Shanghai Composite Index closed the morning session down 4.1%, extending its losses from the recent highs to over 12.8%. The stock exchanged ended up closing the day down 4% at its lowest point since mid-2017.
Early on Friday, it appeared that Europe would avoid the pain of a further rout, with only small losses registered in morning trading.
However, as the day has progressed, losses have intensified, and by around 1.00 p.m. GMT (8.00 a.m. ET), most major European bourses are more than 1% lower from their opening price.
Here’s the scoreboard:
- Britain’s FTSE 100 – down 0.91%
- Germany’s DAX – down 1.81%
- France’s CAC 40 – down 1.66%
- Italy’s FTSE MIB – down 1.54%
- Spain’s IBEX 35 – down 1.68%
- Euro Stoxx 50 – down 1.97%
“Equities are off their best levels and back under pressure,” Mike van Dulken, head of research at Accendo Markets said.
“After an exciting week in terms of volatility, the bounce after the sell-off is looking more dead-cat than bullish-reversal, with major indices testing support levels and looking set to resume the downtrend that began late January, resulting in in stock market corrections which took many by surprise.”