The Ibex 35 has started the session this Thursday with a fall of 1.82%, which has led leading stocks to be sharply down following yesterday’s decline on Wall Street.
Asia followed suit with Tokyo’s Nikkei index dropping 3.89% and the Shanghai Stock Exchange of China losing more than 5% of its value.
This shift in confidence has now spread to all the major markets in Europe with Spain’s IBEX 35 falling below the psychological 9,000 level that now sees every stock in the red.
The pessimism in the stock market is due to analysts predicting a slowdown in the world’s economy brought on by the threat of a trade war between the United States and China. There is also pressure coming out of Italy as to how bad its financial situation is with many predicting it could, in fact, be worse than what we saw in Greece.
Meanwhile, the Federal Reserve is again talking about raising rates which of course always has a negative effect on stock prices.