European shares fall to lowest level in 6 months

Updated / Friday, 9 Feb 2018 18:09

Asian and European markets see more losses today after steep falls on Wall Street

European shares fell to their lowest level in almost six months after a roller coaster week marred by a historic spike in volatility on worries a comeback of inflation would speed a shift to tighter monetary policies.

London's FTSE index dropped 78 points (1.1%) to 7092, while the Paris CAC fell 72 points (1.4%) to stand at 5079, and the Frankfurt DAX fell 196 points (1.6%) to close at 12,005.

Dublin's ISEQ index closed trading down 51 points (0.8%) at 6599.

World stock markets fell with major US equity indexes shedding around 1% after swinging between positive and negative territory, a day after a plunge that confirmed a correction for the market.
           
Benchmark Treasury yields fell in volatile trading, though investors may still be wary of holding positions over the weekend.
           
Concerns about higher bond yields and interest rates spurred recent selling of equities, though the retreat in the market had been long awaited by investors after months of advances.        
           
The Dow Jones Industrial Average fell 278 (1.2%) to 23,582, the S&P 500 lost 23 points, or (0.88%) to 2,558 and the Nasdaq Composite dropped 74.04 points (1.1%) to 6,703.
Earlier, a 4% drop in Chinese shares in Asian trade dealt reeling world stock markets a fresh blow today.

China's overnight plunge hit at confidence again after the second 1,000 point loss of the week for the Dow Jones on Wall Street had sent it into official correction territory.

On top of pressure from the drop in global shares, Chinese equities had also been hurt by traders closing positions ahead of the Lunar New Year holidays which begin next week. 

Meanwhile, Japan's Nikkei index also shed 2.3%, en route to a weekly loss of 8.1% - its biggest since February 2016. Hong Kong's Hang Seng index closed 3.1% lower.