Asian and European stock markets declined at the start of weekly trading on Monday, following negative economic data released in the United States last Thursday and Friday.
The U.S. Labor Department said nonfarm payrolls increased by 114,000 jobs last month, well below the median forecast of 175,000 jobs, according to a Reuters poll of economists.
It’s also far short of the 200,000 jobs economists believe are needed to keep up with population growth.
The unemployment rate jumped to 4.3%, nearly a three-year high.
European stocks plunge
European stocks fell to their lowest levels in about six months on Monday amid global selling, driven by fears of slowing economic growth in the United States.
The European Stoxx 600 index fell 2.68% to 484.45 points – at the time of writing the report – after falling to 482.42 points, its lowest level since February 13.
The index is expected to record its worst daily performance in two and a half years.
The index had its worst weekly performance in nearly 10 months on Friday, falling below 500 points for the first time since April 15.
Investors have been avoiding riskier assets, driven by fears that the United States is heading towards an economic recession.
Details of the decline in European stock markets
- The UK’s FTSE 100 index fell 2.32% to 7,984 points.
- The German DAX index fell 2.75% to 17,175 points.
- France’s CAC 40 index fell 2.41% to 7,076 points.
- Italy’s FTSE MIB fell 3.07% to 31,035 points.
- Spain’s IBEX 35 index fell 2.82% to 10,371 points.
Japanese stocks collapse
Tokyo Stock Exchange indices in Japan ended Monday’s session with sharp collapses, as the Nikkei index fell 12.4% to 31,458 points, and the broader Topix index fell by about 12.2% to 2,227 points.
Regarding the rest of the other Asian markets:
- Hong Kong’s Hang Seng Index fell 1.465% to 16,698 points.
- The Shanghai Composite Index fell 1.54% to 2,860.70 points.
- India’s Sensex fell 2.79% to 78,724 points.
- Singapore’s index fell 4.07% to 3,243.67 points.
American retreat
And in last Friday’s session, the last session of last week:
- The US Dow Jones Industrial Average fell 1.51% to 39,737.26 points.
- The S&P 500 lost about 1.84% to 5,346.56 points, reaching its lowest level since June 4.
- The Nasdaq Composite Index fell 2.43% to 16,776.16 points.
