Frankfurt’s Dax and Paris’s CAC were down 2.2% and 2% respectively.
London’s FTSE 100 was down 150 points or 2% at 7,184.74 in mid morning trade.
On February 5, the FTSE 100 closed at its lowest level since April 2017.
The falls follow some good years for investors.
Last year, the Dow Jones was up 25% and London’s FTSE 100 rose 7.6%.
Hong Kong’s Hang Seng ended closed 5% lower and South Korea’s Kospi index gave up 2.6%. Australia’s benchmark S&P/ASX 200 lost 3.2%.
Japan’s Nikkei saw steeper falls overnight, with a loss of some 7% at one point.
Unlike elsewhere in the world, where interest rates are beginning to or are expected to start rising, Japan’s immediate economic outlook remains stagnant. The authorities there said there was little chance of interest rates being increased.
Traders returned to their desk in the aftermath of Friday’s rout to another bout of selling.
That left the Dow Jones Industrial Average index down 1,175 points, or 4.6% at the end of Monday’s session to 24,345.75.
The decline was the largest in percentage terms for the Dow since August 2011, when markets dropped in the aftermath of “Black Monday” – the day Standard & Poor’s downgraded its credit rating of the US.
The drop on the Dow Jones was closely followed by the wider S&P 500 stock index, down 4.1% and the technology-heavy NASDAQ, which lost 3.7%.
However, the White House reassures investors saying it was focused on “long-term economic fundamentals, which remain exceptionally strong”.
Asian markets have tumbled after results from the American presidential polls suggested a victory for Donald Trump looked increasingly likely.
All major markets in the region are now lower, with money flowing into safe haven stocks, gold and currencies including the yen.
Meanwhile the Mexican Peso has hit an all-time low against the dollar.
As traders had expected a comfortable Hillary Clinton win, even a tight race is enough to spark volatility.
Image source Flickr
Japan’s Nikkei 225 is down by 5.2% while the Hang Seng in Hong Kong is 3.8% lower and the Shanghai Composite has lost 1.6%.
Australia’s ASX 200 dropped by 2.1% while the Kospi in South Korea is 3.1% lower.
Earlier, American and European markets closed higher – but US stock futures fell sharply with the Dow Jones index expected to lose more than 4% – 800 points – when trading resumes on Wall Street on November 9.
The Mexican peso has seen some of the most notable fluctuations, falling more than 10% against the dollar.
The peso’s movements are seen by many as a good indicator of the election’s likely outcome, with an upward movement suggesting Hillary Clinton is ahead.
Mexico is expected to suffer if Donald Trump was elected because of his pledges to build a wall along the US border with the country and renegotiate their trade agreement.
Meanwhile the Japanese yen is viewed as a safe haven currency in situations of international volatility, so a strengthening yen suggests traders see a Hillary Clinton victory as less likely.
Europe’s stock markets have cut their losses after oil rose back above $30 a barrel, despite another slide in Asia on January 26.
London’s FTSE 100 was down 0.5% at 5,847.5 points, with declines of about 0.4% in both Frankfurt and Paris.
Shanghai tumbled 6.4% to its lowest close since December 2014, while the Hang Seng in Hong Kong fell 2.4%.
Brent crude rose 1.2% to $30.87 a barrel, reversing earlier falls, while US oil was up 1% at $30.63.
Stock markets have made the rockiest start to the year in recent memory as worries over the economic strength of China- considered for years the engine of world economic growth – have intensified.
Other investment prices have been buffeted by falling confidence.
Although China is still growing the pace is slowing, and as demand for key industrial products such as oil and iron ore slips back, so do their prices.
Oil prices were hit again earlier on January 26 by figures from China showing annual rail freight volume – a key economic indicator – fell 11.9% last year, compared with a decline of 3.9% in 2014.
The Shanghai index has already fallen about 17% this year.
On the FTSE 100, among the top risers were Randgold Resources and Fresnillo.
Gold rallied to its highest level since November at $1,112.86 an ounce. The safe-haven commodity has risen nearly 5% this year, after sliding more than 10% in 2015.
The US Federal Reserve’s rate-setting committee starts a two-day policy meeting on January 26 and is not expected to make any change.
Meanwhile, Chinese state media have warned billionaire investor George Soros against betting on falls in the yuan or the Hong Kong dollar.
George Soros, who made more than $1 billion from shorting sterling in 1992, has said he was betting against the S&P 500, commodity-producing countries and Asian currencies, although he has not specifically mentioned the yuan or Hong Kong dollar.
China’s central bank has been making plenty of liquidity available to the banking system to avoid any cash squeeze ahead of the long Lunar New Year holiday early next month.
Traders said that the bank would inject 440 billion yuan into the money markets, the biggest daily injection in three years.
Japan stock market hit a one-year low in January 18 trade following big falls in the US and as oil prices dropped below $28 a barrel for the first time since 2003.
The benchmark Nikkei 225 closed down 1.1% at 16,955.57 – its lowest close in a year.
In Australia, investors also reacted to falling oil prices.
The benchmark S&P/ASX 200 closed down 0.7% at 4,858.70, with energy-related stocks and banking shares weighing on the index.
BHP Billiton shares fell 3%, Woodside lost 2.6%, and Santos shares fell 8.4%.
Australia’s big lenders also saw falls on January 18, with ANZ’s shares down 2% and Westpac’s down 1%.
In South Korea, the benchmark Kospi index closed flat at 1,878.45 after spending much of the day in negative territory.
In China, analysts said they expected markets to be hurt further this week by falling oil prices, together with continued worries about the country’s economic growth. China’s latest quarterly gross domestic product numbers are out on January 19.
Housing data released on January 18 showed house prices rose 1.6% in December from a year earlier. China’s housing market accounts for about 15% of the economy and the latest numbers mark the third consecutive month of year-on-year gains.
Hong Kong’s Hang Seng index closed down 1.5% at 19,237.45, while the Shanghai Composite finished the day 0.44% higher at 2,913.84.
Asian stock markets opened higher on November 6 after US stocks hit record highs on Republicans taking control of the Senate.
The Republican victory raised investor hopes for more pro-business and energy-friendly policies from the US government.
The Dow Jones jumped to a new record close of 17,484.53, while the S&P 500 also finished at a record 2,023.57.
Japan’s Nikkei 225 index was up 0.4% to 17,012.71 after five days of gains.
The yen strengthened marginally against the dollar to 114.63, down from 114.69 yen in New York trade.
Asian stock markets opened higher after US stocks hit record highs on Republicans taking control of the Senate
In Greater China, Hong Kong shares opened up 0.2% with the Hang Seng index at 23,737.76.
The benchmark Shanghai Composite index was higher 0.1% to 2,423.23 points.
In Australia, shares were trading lower 0.1% with the benchmark S&P/ASX 200 index at 5,510.20 points despite news that employment figures rebounded in October.
Government data showed that Australia added an estimated 24,100 jobs in October, recovering from a revised 23,700 drop in September. But concerns about the reliability of the data that has been revised a few times in past months weighed on investor sentiment.
Shares of struggling television channel Ten Network rose as much as over 10% in early trade after it said it had hired Citigroup to assess “strategic options” as reports surfaced of takeover offers.
In South Korea, the Kospi index was up over 0.3% at 1,937.78 points.
Asian markets opened lower on October 16 after Wall Street tumbled on US economic data, fuelling growth concerns.
Data from the US showed retail sales and producer prices both fell in September, dimming expectations of an interest rate hike by the central bank.
The S&P 500 fell as much as 3%, briefly turning negative for the year before closing down 0.8%.
Japan’s shares fell more than 2% to a four-and-a-half-month low.
In early trading the Nikkei 225 was at 14,751.77. The dollar was at 105.92 yen, flat from New York trade.
Asian markets opened lower after Wall Street tumbled on US economic data
Among the losers were shares of Toyota, down over 2% after the automaker issued a recall of 1.75 million vehicles on Wednesday.
Hong Kong shares opened down almost 1% as the Hang Seng Index fell 226.55 points to 22,913.50.
On the mainland, the Shanghai Composite fell 0.5% to 2,451.65 points after data showed that the rate of inflation in September fell, adding to evidence of a slowing economy.
In Australia, the benchmark S&P/ASX 200 was lower 1% at 5,194.80 points.
Shares of Woodside Petroleum, Australia’s largest independent oil and gas producer, were lower 0.1% despite its third quarter production results beating forecasts.
In South Korea, shares followed the global downtrend.
The benchmark Kospi was down 0.7% after the Bank of Korea cut its interest rate for the second time in three months on October 15, and also downgraded its growth forecasts for the economy for this year.
Most Asian markets have fallen again as investors continue to react to news that the Federal Reserve could begin to scale back its stimulus programme.
South Korea’s main index dropped 1.5% while Australia’s lost 0.4%. However, Japan’s Nikkei reversed early losses.
The indexes in Shanghai and Hong Kong were down more than 2% in early trade but pared losses.
On Thursday in the US, the Dow Jones share index fell 2.3% – its biggest drop this year.
The Fed has been trying to support the weak US economy by buying bonds at a rate of $85 billion a month, under a policy known as quantitative easing (QE).
However, on Wednesday, Fed chairman Ben Bernanke said that if the US economy continued to show sign of improvement the central bank could start to slow down its bond purchases as early as this year and end the programme next year.
Most Asian markets have fallen again as investors continue to react to news that the Federal Reserve could begin to scale back its stimulus programme
The excess liquidity in the US has meant a lot of funds have been flowing into emerging markets, especially in Asia.
“Asia has benefited from US capital inflows, partly in relation to QE,” said Mitul Kotecha, from Credit Agricole CIB.
“It has been force-fed with steroids, and now that the steroids are going to be pulled back what will happen is a period of transitional volatility that can continue through summer.”
Currencies in Asia were weak as well against the US dollar, however the weakness in the Japanese yen caused a big reversal in the Nikkei in late trade.
The Nikkei, which had sank more than 2% during the morning trading session, finished 1.7% higher.
A weak yen is good news for Japanese exporters as it makes their goods cheaper overseas and boosts profits that are repatriated back home.
Exporters led the gains with Suzuki Motor jumping nearly 4% and Fast Retailing surging more than 6%.
Asian markets and the euro have risen after EU officials agreed a bailout deal for Cyprus, easing fears that the country’s banking system problems may spread.
Cyprus will now get a 10-billion euro ($13 billion) cash injection to keep its banking system running and prevent it from crashing out of the eurozone.
Investors had feared that its exit from the bloc may escalate the region’s debt crisis and derail a global recovery.
Shares in Japan, South Korea, Hong Kong and Australia rose on the news.
“The news was what markets were waiting for, some kind of an agreement,” said Yuji Saito, director of foreign exchange at Credit Agricole in Tokyo.
Japan’s Nikkei 225 index rose 1.7%, South Korea’s Kospi gained 1.5%, Hong Kong’s Hang Seng added 0.6% and Australia’s ASX200 was up 0.5%.
A failure to reach a deal may have seen the European Central Bank (ECB) cut emergency funding to Cyprus’s two biggest banks, leading to an effective bankruptcy of Cyprus’s government.
The fears were that such a move may prompt the country’s exit from the bloc.
Many analysts had been concerned that Cyprus’s exit may cause a loss of confidence across the eurozone and prompt investors to withdraw from other troubled economies of the bloc, such as Greece.
These concerns had seen investors ditch the euro over the past few days in favor of other assets, such as the Japanese yen and US dollar, seen as comparatively safer.
Asian markets have risen after EU officials agreed a bailout deal for Cyprus
However, news of the Cyprus deal boosted the euro.
The single currency gained 0.8% against the US dollar. It was trading at $1.3044 in early Asian trade.
It rose 1.3% against the Japanese yen to trade at 123.81 yen.
“This will likely limit the euro’s downside, with those who shorted the euro covering their positions, and improve general risk sentiment,” said Hiroshi Maeba, head of foreign exchange trading for UBS in Tokyo.
Ben le Brun, an analyst at OptionsXpress in Sydney, added that the deal was likely to have a positive impact on the oil markets as well.
“We should see some positive sentiment reverberate through energy markets overall for at least the next 24 to 48 hours,” he said.
Brent Crude rose 0.3% to $108.34 per barrel in Asian trade, while US Light Crude gained 0.4% to $94.1 per barrel.
Cyprus had agreed a bailout deal with the EU and the IMF last week.
However, the EU and IMF had asked Cyprus to raise 5.8 billion euros in order to secure the funds.
They had proposed that Cyprus impose a one-off levy on bank deposits in order to raise the cash, a move that triggered protests in Cyprus and resulted in savers rushing to ATM machines to withdraw their money – a move that brought fears of a run on the banks.
The Cyprus parliament rejected the proposal last week, delaying an agreement to secure the bailout funds.
According to the latest deal, all deposits under 100,000 euros will be “fully guaranteed”.
However, Laiki (Popular) Bank, the country’s second-biggest, will be wound down and holders of deposits of more than 100,000 euros will face big losses.
The levy on accounts in Laiki Bank could be as high as 40%, correspondents say.
Large deposits in the Bank of Cyprus, the country’s biggest bank, will also face a levy.
Jeroen Dijsselbloem, president of the Eurogroup of eurozone finance ministers, told a press conference in Brussels that the percentage to be levied on large deposits in the Bank of Cyprus will be decided in the coming weeks.
Analysts said that while the draft deal had helped ease market jitters, uncertainties surrounding its implementation were likely to hurt sentiment in the coming days.
Asian markets have risen, following gains on Wall Street, after the US Federal Reserve unveiled its latest stimulus plan.
The US central bank said it would buy $40 billion of mortgage debt a month and kept interest rates at below 0.25%.
It said it would also continue its programme to reduce long-term borrowing costs for firms and households.
Japan’s Nikkei 225 index rose 1.8%, South Korea’s Kospi gained 2.6% and Hong Kong’s Hang Seng added 2.5%.
This followed gains of 1.6% rise in the Dow Jones and S&P 500 indexes on Thursday.
Asian markets have risen, following gains on Wall Street, after the US Federal Reserve unveiled its latest stimulus plan
Investors are hoping the measures will revive growth in the US economy, the world’s biggest, and a key market for Asian exports.
“They’re saying that the punch bowl, the fuel for the economy, isn’t going away – it’s going to be here as long as you need it,” said Tony Fratto, managing partner at Hamilton Place Strategies, a policy consulting firm.
There have been growing fears about the global economy with a weak recovery in the US and the ongoing debt crisis in the eurozone.
The slowdown in China’s economy, the world’s second-largest, and one of its biggest drivers of growth after the global financial crisis, has fanned those fears.
Prompted by these concerns, policymakers in these regions have been taking measures to try to spur a fresh wave of growth.
The Federal Reserve’s announcement came days after the European Central Bank (ECB) announced its latest plan.
Last week, the ECB said that it would buy bonds from the bloc’s debt-ridden nations in an attempt to bring down their borrowing costs.
Meanwhile, China has cut its interest rates twice since June to bring down borrowing costs for businesses and consumers. Beijing has also lowered the amount of money that banks need to keep in reserve three times in the past few months to further encourage lending.
This week South Korea has also unveiled two stimulus measures aimed at boosting domestic demand and helping small businesses.
Analysts said the moves had helped reassure investors and markets that policymakers were doing all they could to ensure growth in the global economy.
“You’re witnessing global economic stimulus across the board,” said Quincy Krosby, a market strategist at Prudential Financial.
“The Fed’s actions are occurring in conjunction with the European Central Bank’s commitments to support the euro and amid talk that China could also deliver a stimulus package.”
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