European stocks were sharply lower Thursday morning, as a sell-off in U.S. equities dragged down global markets.
Symbol Name Price Change %Change Volume FTSE --- DAX --- CAC --- IBEX 35 ---
The pan-European Euro Stoxx 600 Index was down by 1.7 percent shortly after the market open. The benchmark hit its lowest level in more than 20 months. Technology stocks led the losses, down 3.2 percent, after a sharp sell-off for the same sector on Wall Street.
Around the world, equity markets have tumbled on the back of rising fears around global economic growth and rising interest rates. The International Monetary Fund warned earlier this week that simmering trade tensions, such as those between the U.S. and China, could lead to a "sudden deterioration in risk sentiment, triggering a broad-based correction in global capital markets and a sharp tightening of global financial conditions." Meanwhile, U.S. Treasury yields have this week climbed to multi-year highs, however they pared gains late into Wednesday's trading session.
President Donald Trump on Wednesday once again criticized the U.S. Federal Reserve, calling the central bank "crazy" for its insistence on hiking rates. Trump also commented on the plunge in markets, calling it a "correction that we've been waiting for for a long time."
Back in Europe, Brexit is largely in focus after the European Union's chief Brexit negotiator, Michel Barnier, struck an optimistic tone on a deal for the U.K.'s eventual withdrawal from the bloc, saying an agreement was achievable as soon as next week. Barnier stressed, however, that the U.K. remaining in the customs union would be the best possible solution to avoiding a hard border between the Irish mainland and Northern Ireland. Both the euro and the British pound bounced against the dollar on Barnier's comments Wednesday, and were up 0.4 and 0.27 percent respectively on Thursday morning.
In corporate news, German carmaker BMW is investing $4.2 billion in its joint venture with Chinese firm Brilliance Auto, giving it a majority stake.
As for data, French inflation and British unemployment figures are due to be released on Thursday morning.
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