Markets sink on ‘crazy Fed’
TRUMP TRASHES FED AS A ROUT IN RATE-HIKE WARY U.S. EQUITIES GOES GLOBAL
singapore/london/dubai — World stock markets sank on Thursday, extending losses from Wall Street, as investors worried that higher interest rates will dent company earnings and a trade war will crimp global business.
European stocks slumped to a 21-month low after Wall Street’s worst losses in eight months triggered a surge of global selling that also hit Asia and emerging markets.
Losses in London, Paris and Milan were at nearly 2 per cent ahead of what looked set to be another early dive from Wall Street, although it wasn’t quite as dramatic as the overnight session in Asia.
MSCI’s broadest index of Asian shares not including Japan ended down 3.6 per cent, having struck its lowest level since March 2017. China’s main indexes had slumped over 5 per cent.
It meant MSCI’s 24-country emerging market index was having its worst day since early-2016, after Wall Street’s swoon had given the 47-country world index equivalent its worst day since February. “Equity markets are locked in a sharp sell-off, with concern around how far yields will rise, warnings from the IMF about financial stability risks and