Tokyo, Hong Kong, Frankfurt, London or New York. Almost all major world stock exchanges entered the new trading week with a dramatic decline. Investors are worried about inflation and further tightening of monetary policy.
The main index of the New York Stock Exchange, the S&P 500, lost nearly three percent of its value during Monday’s trading. The Nasdaq technology index was even more defensive, down nearly four percent from Friday’s close.
Shangai in positive numbers
But the New York Stock Exchange just rode the wave of sell-offs that had already swept through Asia and Europe. Of the major global stock exchanges, only Shanghai remained in positive territory, with its aggregate index firming by 0.09 per cent. Hong Kong was the deepest faller in Asia, with the Hang Seng index losing nearly four per cent.
Bad mood in Europe
The bad mood then spilled over into Europe, where almost all stock markets ended in the red. The biggest drop was recorded in the pan-European Stoxx 600 index, which weakened by 2.9 percent. The markets are reacting to the ongoing war in Ukraine, anti-epidemic measures in China or expectations of further interest rate hikes. Experts do not rule out that further sell-offs will come to the stock markets.