European markets see slump amid recession fears

Yesterday European stocks fell to a 16-month low, extending last week’s slump. Investors have been put off by falling bond yields and the fact that crude oil prices have declined another 2% after a meeting between OPEC producers Saudi Arabia and Venezuela provided no indication they’d be able to do anything to boost prices.
Germany’s DAX was the biggest loser, down 2.4%, while the French CAC 40 declined by 2.29% and London’s FTSE 100 was down 1.76%. The pan-European Stoxx 600 was down 2.5%.
Much of this is down to worries over global growth in the financial sector and effect of negative interest rates on Europe. Concern over the health of the sector, which has prompted comparisons with the early days of the global financial crisis in 2008, pushed borrowing costs in the euro zone's most indebted countries higher and sent investors to the relative safety of ultra-low-risk government debt.
This is likely to have an effect on US markets too.
Follow @BizReviewEurope
- Abu Dhabi Finance Week: 10 speakers you don’t want to missCorporate Finance
- How Middle East is embracing the future of digital financeCorporate Finance
- What key trends are driving banking in the Middle East?Leadership & Strategy
- EU referendum: can business cope with uncertainty caused by democracy?Corporate Finance
Featured Articles
SAP has announced it has appointed a new President for a newly-created EMEA region, aiming to make the most of the opportunities of cloud and AI technology
Technology giant SAP has expanded its portfolio with the acquisition of LeanIX, a leader in enterprise architecture management (EAM) software
To help businesses achieve increased productivity, Siemens and Microsoft are deepening their partnership by showcasing the benefits of generative AI