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Daniel Foster
The global stock market crashed due to increasing concerns about economic downturn in the U.S. and other worldwide areas facing elevated interest rates. Poor statistical information about the U.S. job market, released on Friday, significantly heightened investor concern regarding the future of the U.S. economy.
Goldman Sachs analysts updated their prediction, now estimating a 25% likelihood of a U.S. economic downturn in the next year, up from the previous 15%. Meanwhile, markets anticipate a 60% probability of the Fed convening an emergency meeting this week to decrease the benchmark interest rate by 25 basis points.
The Stoxx Europe 600 composite index, comprised of large European companies, dropped 2.17% to 487.05 points at the end of trading on Monday.
FTSE 100 in Britain dropped by 2.04%, the largest decrease since March 2023, while German DAX fell by 1.82%, French CAC 40 by 1.42% (reaching its lowest point since November), Italian FTSE MIB by 2.27%, and Spanish IBEX 35 by 2.34% (to its lowest level in nearly four months).
source: tradingeconomics.com
Goldman Sachs analysts updated their prediction, now estimating a 25% likelihood of a U.S. economic downturn in the next year, up from the previous 15%. Meanwhile, markets anticipate a 60% probability of the Fed convening an emergency meeting this week to decrease the benchmark interest rate by 25 basis points.
The Stoxx Europe 600 composite index, comprised of large European companies, dropped 2.17% to 487.05 points at the end of trading on Monday.
FTSE 100 in Britain dropped by 2.04%, the largest decrease since March 2023, while German DAX fell by 1.82%, French CAC 40 by 1.42% (reaching its lowest point since November), Italian FTSE MIB by 2.27%, and Spanish IBEX 35 by 2.34% (to its lowest level in nearly four months).
source: tradingeconomics.com
