World Markets Treble, Stocks Tank over US Recession Fears
![World Markets Treble, Stocks Tank over US Recession Fears](https://www.kibrispostasi.com/imagecache/headline_mobile/news/a/an/anafoto_1599113680.jpg)
Tokyo led a collapse across Asian and European equities on Monday, after weak U.S. jobs data fanned fears of a recession in the world's top economy and boosted bets on several Federal Reserve interest rate cuts.
![World Markets Treble, Stocks Tank over US Recession Fears](https://www.kibrispostasi.com/imagecache/newsimage/news/a/an/anafoto_1599113680.jpg)
The benchmark Nikkei 225 index plunged 12.4 percent, or 4,451.28 points, to 31,458.42, its largest points drop in history.
London and Paris were down more than 2 percent at the open while Frankfurt was down more than 3 percent.
The yen surged to 141.73 against the dollar, a level not seen since early January.
Daiwa Securities said the losses in Tokyo reflected "deepening concerns over the uncertain U.S. economy."
"Investor sentiment was down as the U.S. employment data for July came in lower than expected, raising fears that the U.S. economy is slowing more than expected," IwaiCosmo Securities said.
Stocks began tumbling in earnest on Aug. 2 after weaker than expected data on U.S. jobs fanned worries that high interest rates meant to tame inflation might push the U.S. economy into a recession.
“To put it mildly, the spike in volatility-of-volatility is a spectacle that underlines just how jittery markets have become,” Stephen Innes of SPI Asset Management said in a commentary. “The real question now looms: Can the typical market reflex to sell volatility or buy the market dip prevail over the deep-seated anxiety brought on by this sudden and sharp recession scare?”
Shares surged to stratospheric heights earlier this year on frenzied buying of stock in companies expected to thrive thanks to advances in artificial intelligence. The latest setback has hit markets heavily weighted toward computer chipmakers like Samsung Electronics and other technology shares.
Source: HDN
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