London, 6 August 2024 (TDI): Stock markets in Europe remained unsettled on Tuesday despite a rebound in Japan which nearly reversed record falls at the start of the week.
London’s FTSE 100, along with stock markets in Frankfurt and Paris, started higher but soon slid back.
Overnight, Japan’s Nikkei 225 stock index jumped by 10.23 percent, or 3,217 points in its biggest one day gain in points, after the previous day’s fall.
Focus has now shifted to the stock markets of United States, which open in a few hours, after a couple of days of torrid trading.
The Nikkei’s 12 percent slump at the start of the week weighed on global stock markets.
Sharp share price drops in United Kingdom, Europe, and US followed.
Global markets jittery after sharp share price falls https://t.co/1N5PjIKdge
— BBC North America (@BBCNorthAmerica) August 6, 2024
Economists say this was in reaction to fears of a US economic slowdown. A rare interest rate cut in Japan is also believed to have played a part.
On Tuesday, the FTSE 100 opened higher, albeit a modest 0.33 percent gain, before dropping. Stock markets in Germany and France followed a similar path.
Stock markets in the United States have fallen following disappointing employment figures for last month which showed that the jobless rate soared.
There has also been concern that shares in big technology companies – especially those investing heavily in artificial intelligence- have been overvalued and some of those firms now face difficulties.
The technology-heavy Nasdaq index has fluctuated sharply in recent days although on Monday, it trimmed losses to end the day 3.4 percent lower.
Meanwhile, the S&P 500 fell 3 percent and the Dow Jones Industrial Average ended 2.6 percent down.
Disappointing Job Figures Toke Speculations
The worse-than-expected jobs figures stoked speculation about when – and by how much – the US Federal Reserve could slash interest rates.
Last week, it voted to hold rates while other central banks opted to cut them.
A number of experts have cautioned that it would be premature to suggest the world’s largest economy is heading for a downturn.
But if it does, it would have wider implications.
The wait for the Federal Reserve’s upcoming meeting will also likely mean stock markets remain unsettled.
