The banking sector is leading the losses with an overall decline of over 5%. Wall Street is dragged by the European crash, although with more moderate declines.
The European stock markets tumbled between 3 and 4.5 per cent on Monday (02/08/2016) carried by the banking sector, fearing that a recession occurs of the world economy. In Spain, the most important stock index, the Ibex 35, fell 4.4% in its worst day since August, closing at 8,122 points below its level since July 2013. The German DAX fell by 3.30% finished at 8979.36 points, which stood for the first time since October 2014, below the psychological barrier of 9,000 points.
Deutsche Bank shares tumbled 9.5% after it announced record losses in 2015. Other large banks, such as BNP Paribas, ING, Santander and Barclays lost more than 5% each. The FTSEurofirst 300 pan-European STOXX Europe 600 indicators (focused on the banking sector) closed with losses of 3.38% and 5.59%, respectively.
“black Monday” in Greece
The day let fall also in all European markets, especially in Greece, which gave almost eight percent and where at noon the media and spoke of a “black Monday.” In this case, besides the pessimistic atmosphere in the markets, investors influenced the refugee crisis and a possible collapse of the talks between Greece and its creditors. The French CAC 40 was down 3.2% and the benchmark index in Milan lost 4.69% at the end of the day.
Infected by European meltdown, Wall Street opened with losses a session in which the euro is changed to $ 1.116. The main indicator, the Dow Jones industrials fell 2.09%. All sectors on Wall Street remained in the red half of the session, including especially the financial (-2.74%), energy (-2.06%), technology (-1.95%), industrial (-1.55%) or raw materials (-1.29%).
LGC (dpa / Reuters / EFE)
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