Global markets slide as investors turn negative
Investor fears of higher US interest rates, global protectionism, emerging-market weakness and an Italian budget row have sent equities sharply weaker in October
London — European markets fell heavily on Monday as investor confidence took a knock from last week’s spike in treasury yields and from a Chinese market slump brought on by concerns that an escalating trade war with the US could dent China’s growth. Chinese stocks returned from a week’s holiday to record their biggest one-day drop since February, with the Shanghai-Shenzhen CSI300 down more than 4% for only the second time in more than two-and-a-half years. This helped set the tone for the European open and stock markets fell with the pan-European index down 0.7% and Germany’s DAX 0.8% lower. The MSCI world equity index, which tracks shares in 47 countries, fell 0.34%. The fall in global equities boosted demand for the dollar as investors rushed for safety. Against a basket of its rivals the greenback rose 0.3%, edging towards a 14-month high hit in mid-August. Investor fears of higher US interest rates, global protectionism, emerging-market weakness and an Italian budget row have al...
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