European stocks are tumbling as the global market sell-off resumes

pulse

February 9, 2018 9:21 AM

Global market sell-off resumed in the USA on Thursday, with US stocks entering a technical correction.

Global market sell-off resumed in the USA on Thursday, with US stocks entering a technical correction.
That sell-off moved to Asia overnight, with China's benchmark Shanghai Composite falling 4%.
Early on Friday, European stocks avoided the sell-off, but as the day progressed losses increased.

LONDON — European equities are seeing large losses in Friday afternoon as the renewed sell-off in the global stock market makes its way to the continent.

After a mid-week pause, stocks in North America and Asia resumed their slide on overnight, with major US bourses tumbling as much as 4% to enter the territory of a technical correction.

according to Bespoke Investment Group

Stocksrallied on Wednesday, with the Dow closing up 567 points, or 2.3%. By Thursday, the index of large companies includingBoeingandApplereturned to the red for 2018.

Once again, North America's slump shifted to Asia, with Chinese stocks in particular taking a pounding.

Early on Friday, it appeared that Europe would avoid the pain of a further rout, with only small losses registered in morning trading.

However, as the day has progressed, losses have intensified, and by around 1.00 p.m. GMT (8.00 a.m. ET), most major European bourses are more than 1% lower from their opening price.

Britain's FTSE 100 — down 0.91%
Germany's DAX — down 1.81%
France's CAC 40 — down 1.66%
Italy's FTSE MIB — down 1.54%
Spain's IBEX 35 — down 1.68%
Euro Stoxx 50 — down 1.97%

"Equities are off their best levels and back under pressure," Mike van Dulken, head of research at Accendo Markets said.

"After an exciting week in terms of volatility, the bounce after the sell-off is looking more dead-cat than bullish-reversal, with major indices testing support levels and looking set to resume the downtrend that began late January, resulting in in stock market corrections which took many by surprise."

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