Stock Market Shake In Europe

Stock markets across Europe tumbled by the closing bell yesterday, starting the morning’s trade significantly down after renewed fears of a worldwide credit scarcity.

The ongoing US mortgage lending crisis and the recent emergency intervention of central banks worldwide were at the centre of renewed fears as to the future of loan availability worldwide, turning investors away from risky securities in their droves.

Asian markets were also heavily in the red during the night, after similar falls during trading across the globe, reflecting the truly international scale of the troubled US economy.

Any gains experienced by the FTSE at the start of the week were all but eradicated after it lost 1.21% by close yesterday. Meanwhile, around central Europe both the Dax and the Cac in France and Germany respectively experienced heavy losses, taking their indexes even further down.

Market confidence was further dented by news from France and Germany that economic growth over the second quarter had remained slow, only days after similar reports from Italy, which were amalgamated to paint a poor picture of the health of the European economy.

With three of the Eurozone’s most powerful assets reporting slender growth, investors were set in a panic about the future of the worldwide economy, when coupled with the ongoing situation across the pond.

Stocks in financial and asset management securities were down considerably with the fears of credit crunch looming large, whilst insurance markets across the Eurozone also took a tumble with credit fears playing a major role in the sell-offs.

The figures, combined with poor trading over the first half of the day, reflect a widespread concern as to the health of the world economy, casting a doubt over the immediate future of trade on the region’s once buoyant stock exchanges.

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