European markets opened sharply lower as risk-off sentiment continues to prevail following intense sell-offs in the Asian session on Monday.
France’s CAC 40 slumped 2.78%, Germany’s DAX fell 2.84%, while the FTSE 100 opened 2.19% lower on Monday morning.
However, the euro strengthened against most other major currencies, with EUR/USD jumping 2% since last Friday, as it is seen as a haven currency.
The Japanese stock markets saw significant declines, with a drop of up to 10% on Monday, extending the intense selloffs that followed the Bank of Japan’s rate hike last week. The Japanese yen spiked to its highest level since 3 January.
Markets are experiencing panic selling due to softened economic data in the US, while the Federal Reserve (Fed) remains reluctant to lower interest rates. Investors are concerned that the Fed may be too slow in loosening its monetary policy to avoid an economic recession. On Wall…
