Business

Wall Street suffers biggest decline since 2011

NEWS WORLD INDIA | 0
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| February 6 , 2018 , 19:20 IST

A dramatic sell-off began last week after economic data in the US showed stronger wage growth. This raised expectations that US interest rates might start to rise more quickly to tackle inflation. Investor worries also peaked over rising US borrowing costs.

US investors had pinned their hopes on economic expansion, improving corporate earnings and stable inflation, but those hopes began to dwindle based on economic data. Yesterday Wall Street suffered its biggest decline since 2011.

And so this week opened with a dip in most other major international markets too. On Monday London's FTSE 100 was down almost 2% after the first few hours of trading and closed at its lowest level since April of last year. Frankfurt's Dax and Paris's CAC dipped as well.

For long-term investors this slip in the markets should make little difference, and there is unlikely to be any prolonged selling. However analysts say that in the short term investors should be prepared for choppier stock markets.

Hong Kong's Hang Seng fell 5% and South Korea's Kospi index was down 2.6% at the close of Monday. Australia's benchmark S&P/ASX 200 slipped 3.2%.

In India Markets extended its weak run with the BSE Sensex falling by over 1,200 points in the opening trade on Tuesday. One major reason for this week’s dip is the market sentiment following sharp losses in other Asian markets that in turn were adversely affected by the US markets.

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