19 Aug.
European shares posted steep falls yesterday led by another big drop of stocks in Frankfurt after a slump in stocks across Asia.
Europe’s benchmark Euro Stoxx 600 index was down 1.99 percent at 233.32 points in late morning trade as losses began to mount up across the region’s leading bourses.
Leading the falls was another sharp decline in Frankfurt, with the market’s main DAX index tumbling by more than 4 percent.
London traded down 1.37 percent, while stocks in Paris declined 1.75 percent and by 1.12 percent in Zurich. The euro traded down yesterday and was hovering around $1.44 (R10.24) in late morning trade.
This came after markets in Asia’s major financial centres closed down. The Tokyo market finished the trading session off 1.25 percent. Japanese exporters nose-dived as the yen climbed to record levels.
The yen has emerged as a safe haven for investors amid the ongoing market uncertainty and concerns about Europe’s political leaders coming to grips with the region’s debt crisis. The price of gold also crept back up towards record levels of $1 800 an ounce.
Stocks in Shanghai also dropped by more than 1 percent amid fresh concerns about China’s growth outlook. Shares in Hong Kong and Sydney also finished the day off more than 1 percent.
Renewed worries that a slowing world economy could undercut energy demand resulted in the price of US oil falling by more than 1 percent to $86.53 a barrel in early trade.
New York’s Dow Jones industrial average index closed up 0.04 percent on Wednesday.
The Stoxx 600 index has gained 1.84 percent on the week.
Source: Business Report
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