Stock Exchanges recorded heavy falls on Wednesday after a further drop in oil prices, and the British pound was devalued to their lowest in seven years, concerns about the global economy and the permanence of the UK in the EU.
the London FTSE 100 index lost 1.60%, the Dax 30 in Frankfurt 2.64%, the CAC 40 Paris 1.96%, the FTSE Milan Mib 2.59% and Madrid Ibex 35 of 3.07%. The same trend affected Wall Street, where shortly before noon the Dow Jones index fell 1.35% and the Nasdaq (NasdaqGS: NDAQ – news). 1.31%
“The European markets fell against background of volatility in oil prices. the most important movements are related to fear, “said Jasper Lawler, analyst at CMC Markets in London.
” the rates in the euro zone will suffer for the same fears that are currently affecting the pound and the Footsie “said Connor Campbell, financial analyst at brokerage Spreadex, referring to the UK referendum held on June 23 to decide whether the country remains in the EU.
the pound fell Wednesday below $ 1.40, amid growing concern that awaken the polls that put side by side the two options. The British currency was trading at $ 1.3913, its lowest level since March 2009.
Markets were impacted by a further decline in the price of a barrel of oil, after the Iranian refusal Eve to join a Saudi and Russian initiative to freeze production.
the trend was reinforced by revelations that US crude stocks rose last week more than expected week. “There is some fear of the unknown before the meeting of the European Central Bank in early March, associated with negative factors such as the fall in oil prices,” said Frederic Rozier, management consultant Meeschaert Gestion Privee in Paris.
the Tokyo stock exchange had also registered a decline of 0.85%, affected by the yen’s rise against the dollar and the euro and the depreciation of crude
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