Wall Street has worst day since 2011 and European stocks fall
Losses for world stocks since January are close to $7-trillion, as the ECB faces tough questions on stimulus withdrawal later in the day
London — Europe attempted a rebound on Thursday after Wall Street’s worst day since 2011 and heavy losses in Asia put global stocks firmly on course for their worst month since the financial crisis. It wasn’t a sunny picture by any means. Germany’s DAX 30 hit a near two-year low and London’s FTSE 100 and Paris’s CAC 40 both brushed one-and-a-half-year lows early on, but a semblance of stability is emerging. The pan-European STOXX 600 was almost back at level-pegging having opened down almost 1% and after Japan’s Nikkei had slumped 3.5% overnight. Currency dealers were also cautiously reversing out of Swiss franc and yen safety trades and Italian and Spanish bonds made ground as traders waited to see what message the European Central Bank (ECB) delivers at its meeting later. “The markets have been acting like classic flight-to-safety markets,” said London & Capital’s head of fixed income Sanjay Joshi, pointing to the slump in stocks and rally in safer bonds and currencies. “The worst...
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