European stocks fell into correction territory Friday, enduring their worst week of the year as downbeat Chinese data and Greek uncertainty weighed. The Stoxx Europe 600 fell 3.3% to close at 361.28. In Frankfurt, the DAX 30 dropped 3% to end at 10,124.52, while France’s CAC 40 tumbled 3.2% to 4,630.99. The U.K.’s FTSE 100 fell 2.8% to close at 6,187.65, marking its biggest weekly decline of the year.
U.S. stocks suffered their worst losses in four years at the end of a bruising week, as growing concern about China’s economy pushed shares in the U.S. and Europe into what money managers call a correction.Wall Street plunged for a second-straight day, forcing all three major U.S. averages to give up their 2015 gains and causing the Dow to easily enter correction territory.The Dow Jones Industrial Average tumbled 530 points, or 3.11% to 16462. The S&P 500 shed 64 points, or 3.17% to 1971, while the Nasdaq plunged 171 points, or 3.52% to 4706. In Athens, the Athex Composite dropped 2.5% to 635.31.
Oil was testing investors' nerves on Friday, with light crude trading near $40 per barrel in afternoon trade on increased fears over the health of the world's greatest consumer, China. U.S. oil prices heading for its eighth week of falls running on Friday, the longest losing streak since 1986. U S Crude finished at $40.45 a barrel, down 2.1%, or 87 cents, on the day.
Brent crude, the global benchmark, fell $1.16, or 2.5%, to $45.46 a barrel on ICE Futures Europe.
Stock markets in the Middle East have fallen sharply yesterday after a difficult week for all major global share indexes.Dubai’s main index, which trades Sunday to Thursday, closed 6.96 percent lower on its opening day. Egypt’s main stock index has fallen to its lowest level in almost two years. The market, known as EGX 30, closed at 6784.09 on Sunday, the Saudi exchange also lost 7% after Fitch ratings agency cut its outlook for the country.
Stock markets are likely to remain volatile this week ahead of the derivatives contract expiry for this month, while global cues and rupee movements may largely drive the trading sentiments, say experts Moreover, monsoon rains, investment trend by foreign investors and crude oil movement would also influence trading. concerns about the health of China’s economy has kept investors worried.
“While the broader markets are expected to be volatile and correct for some more time, the undercurrent of the markets is strong,” said Jimeet Modi CEO of SAMCO Securities.
Asia stocks plummet as China rout gathers pace, yen rallies. The Shanghai Composite is off 8.11% while the Hang Seng is down 4.03%. The Nikkei 225 is trading. 3.21 % lower.