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Traders are betting that the global market bloodbath is just getting started

Angry Bear

  • Stock markets around the world sell off sharply as fears about slowing economic growth and rising interest rates spook investors. Declines in US futures show selloff is not slowing down.
  • Dow Jones saw its third largest one-day point drop in history on Wednesday. Bloodbath then spread to Asia with China's Shanghai Composite losing more than 5%.
  • Europe is now suffering: all major bourses down at least 1%; VIX 'fear index' is spiking, up 5.4%

Stock markets around the world are taking a hammering on Thursday as rising fears about global economic growth and ongoing trade tensions continue to rattle investor confidence. US stock futures are in the red, signaling the selloff will continue across the course of Thursday.

Concerns in Asia are exacerbated by investor doubts that fresh stimulus from China's central bank will help prevent US President Trump's trade war from triggering an economic slowdown. Warnings about global growth from the IMF, along with rising interest rates, contributed to the concerns. Trump yesterday weighed in on the sell-off to blame the Fed, calling its interest rate policy "crazy."

"All eyes are likely to be on the US when trading begins this afternoon as investors look to judge if this is a ‘healthy correction’ or something more," AJ Bell said in an emailed report. 

US stock markets open at 9:30 a.m. (EST), or 2:30 p.m. in London. Here's how markets look right now:

  • US FUTURES: Stock index futures of the S&P 500, the Nasdaq and the Dow are all trading about 1% lower as of 10:48 am in London (5:48 am EST).
  • THE VIX: The volatility index, commonly known as 'the fear index' is spiking, up 5.7%
  • CHINA: The Shanghai Composite was down 5.2%.
  • EUROPE: Asia's bloodbath session has also entrenched itself in Europe, with virtually all major European indices losing more than 1% of their value.
  • UK: Britain's blue-chip FTSE 100, for example, has lost 1.77% to trade at 7,019 points, while Italy's FTSE MIB index is headed for a bear market, (a 20% decline within a two-month period) down 1.9% at 23,894.
  • BITCOIN: Cryptocurrencies weren't spared either. All major crypto assets are down on Thursday, with the likes of ethereum and bitcoin cash losing more than 10% of their value.

China's most significant mainland index, the Shanghai Composite, dropped more than 5% during Thursday's trading session, the second time in just four days it has lost 4% or more of its value. Elsewhere in Asia, Hong Kong's Hang Seng lost 3.3%, while Japan's benchmark Nikkei 225 was down just shy of 4%. 

Those moves followed a bloodbath in the US. On Wednesday, with the Dow Jones seeing a more than 800 point drop during the session, its third biggest single-day point fall in history. Things then spread to Asia overnight, with all major indices on the continent witnessing major drops. 

"A crazy day in the markets yesterday looks set to continue with further selling expected in equities today," Neil Wilson, chief analyst at Markets.com said in an email Thursday morning. "Clearly we’ve entered a severe bout of selling that may well have further to go."

SEE ALSO: BLOODBATH: Stocks across Asia are getting obliterated

AND: Bitcoin tanks as cryptocurrencies join in global market bloodbath

AND DON'T MISS: The market's 'fear index' just exploded upwards as stocks around the world plummet

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