London’s FTSE 100 fell sharply on Friday to the lowest levels in almost a month as heavyweight financial and commodity-linked stocks declined, following the sell-off triggered by US Federal Reserve’s decision this week.
UK investors also await the Bank of England’s meeting next week where the policymakers are expected to react to the inflation levels of over two per cent, above BoE’s target. Last week, US Fed’s hawkish turn worried investors.
Across the Atlantic, US stocks also heavily declined following comments from Fed official James Bullard over interest rates rising earlier than expected.
The Dow Jones Industrial Average and S&P 500 posted their worst weekly performance in weeks, as both crashed around 1.5 per cent on Friday. The tech-heavy Nasdaq Composite also declined almost one per cent.
On Monday, Asian stocks declined following the global peers, as Japan’s Nikkei 225 crashed by over 1,000 point or 3.5 per cent by noon. Hong Kong’s Hang Seng index dropped 1.4 per cent and mainland Chinese stocks fell in first half of trade as the Shanghai composite declined 0.2 per cent.
Indian indices also opened lower, mirroring global markets. Sensex opened 487 points down, recovering some losses after early minutes. The NSE Nifty is below 15,500.