Global stocks just experienced a ‘catastrophic’ session

According to FTthe global FTSE All-World index fell 3%, the biggest drop since June 2020 and to the lowest level since December 2020.

Investors seem to be concerned about the growth rate of economy The world is showing signs of slowing down.

According to data released on May 9, China’s export growth in April fell to the lowest level in two years. Reports last week also pointed to stagnation in the manufacturing sector in Germany and France.

On Wall Street (US), the S&P 500 index fell 3.2% while the Nasdaq index fell 4.3%. The pan-European Stoxx 600 index fell 2.9%.

In Asia, China’s CSI 300 index fell 0.8%, while Japan’s Topix fell 2%.

Global stocks just experienced a 'catastrophic' session - 1

Stock The world has just experienced its worst trading session since the beginning of the pandemic. (Image: Getty Image)

“It’s hard to say if things will bottom out,” he said. Joost van Leenders, equity strategist at Kempen Capital Management said.

This expert said that investors no longer expect the US Federal Reserve (FED) to prioritize stabilizing financial markets as they did at the beginning of the pandemic.

Crude oil prices also fell sharply last night. Accordingly, Brent crude fell nearly 6% to $105.94 per barrel, reflecting concerns about falling demand.

The price of natural gas futures is even more “dirty”. Distribution center Henry Hub’s pre-month contract fell 12% to just $7 per million UK thermal units.

According to FTThe trend of interest rate hikes, monetary tightening by many central banks is changing the calculus of investors as they hesitate about whether to invest in risky assets or not.

Bitcoin, which is considered a highly speculative asset, fell more than 10% on May 9, to its lowest level since June 2021.

Meanwhile, the fund of the ARK Innovation exchange-traded fund (ETF), which held many stocks that increased sharply at the peak of the epidemic, also decreased by 10%.

Rising interest rates and growth concerns also affect the global corporate bond market. An index that measures the cost of protecting against defaults on European corporate bonds has risen to its highest level since 2020.

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