Global financial markets have fallen sharply amid concern over rising inflation and the threat of contagion in China’s property sector from the debt-stricken developer Evergrande, despite a boost from the relaxation of US travel rules.

Markets around the world came under selling pressure, with the FTSE 100 in the UK slumping by 60 points, or 0.9%, to 6,903.

Europe’s Stoxx 600, a pan-European index of listed companies, closed down 1.7%. Shares fell by more than 2% in Germany, France and Italy and 1.2% in Spain.

US markets also fell sharply, with the Dow Jones losing 1.7%, the S&P 500 closing 1.6% lower and the tech-heavy Nasdaq down more than 2%.

It came despite a rally in airline shares after the US announcement of plans to partially lift a travel ban on UK and EU citizens imposed in response to Covid-19.

Shares in British Airways’ owner IAG soared by 11%, making it the best performer on the FTSE 100, while the jet engine maker…

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