World markets in PANIC: Europe and Asia stocks in the RED as China sparks growth fears

World markets in PANIC: Europe and Asia stocks in the RED as China sparks growth fears

Global stock markets: A sea of red washed across worldwide shares today (Image: GETTY)

European shares were trading sharply lower this morning with the German DAX leading the losses as investors continue to keep a concerned eye on the health of the Chinese economy. Also impacting the Europe stock market was a dent in carmaker and auto supplier industry shares, which have been plagued by tougher new emissions tests. The DAX was down by 164.72 points at around 09:45 GMT, having dropped 1.51 percent. At the same time of trade in the UK, the FTSE 100 had lost 81.71 points and was trading 1.19 percent lower.

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The Paris CAC 40 dropped by 69.66 points, down 1.42 percent, while the Spanish IBEX 35 had plummeted 127.60 points, a loss of 1.43 percent.

Asian stocks were also rattled near the close of the trading day over fears for the China economy.

Mainland China’s benchmark Shanghai Composite and the blue-chip CSI 300 declined 0.6 percent and 0.9 percent, respectively, and Hong Kong’s Hang Seng tumbled 1.6 percent.

The Hang Seng index fell 1.6 percent, while the China Enterprises Index lost 1.9 percent.

FTSE 100: The UK stock index was trading lower today (Image: BLOOMBERG)

The overnight news in China and taking a look at stocks, sheds light on the move in bonds

Martin van Vliet, senior rates strategist at ING

MSCI’s Asia ex-Japan stock index was weaker by 1.35 percent, as Japan’s Nikkei index closed down 2.02 percent.

In terms of the auto sector in Europe, which is particularly sensitive to global growth fears due to being a export-heavy institute, shares were down more than 2.6 percent.

The weaker data from China revealed retail sales in the world’s second-largest economy grew at the weakest pace since 2003 and industrial output rose by the least in nearly three years.

Martin van Vliet, senior rates strategist at ING, said: “The overnight news in China and taking a look at stocks, sheds light on the move in bonds.

“As far as the ECB is concerned, it was clear there was a dovish bias to the press conference.”

Overnight on Wall Street, the S&P 500 ticked down 0.02 percent to 2,650, while the Nasdaq Composite dropped 0.39 percent.

The stock market had breathed a sigh of relief in recent weeks on news that the trade war between the United States and China could be cooling down.

Yesterday saw positive comments from US President Donald Trump, who claimed  talks were taking place with Beijing by phone.

The US leader went on to cliam he would not raise tariffs on Chinese imports until he was sure about a deal.

Nobuhiko Kuramochi, chief strategist at Mizuho Securities, said: “Although hopes of progress in US-China talks and cheap valuations are supporting the market for now, we have lots of potential pitfalls.

“If US shares fall below their triple bottoms hit recently, that would be a very weak technical sign.”

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