It has been a grim start to the week for stocks thanks to recession fears and tariff worries, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.
FTSE 100 touches one-month low
The weakness in US markets is making itself felt in Europe, and the FTSE 100 in particular is taking a beating, dropping to a one-month low. Banks and mining companies have driven the slump, offsetting a good day for utilities and consumer staples like Unilever. Last week’s key feature was the resilience of Europe versus US weakness, but as the stimulus story fades it is clear that the region’s indices can’t decouple entirely from Wall Street.
Wall Street tumbles on the open
Hopes that Friday’s late bounce for Wall Street would continue into the new week have been dashed as the S&P 500 falls to a six-month low. Tech stocks continue to lead to the downside as investors, faced with growing policy uncertainty in the US, choose to dump their previous strong performers. Hopes of a bounce had been rising over the weekend, but it looks like the selling isn’t over yet.
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