Wall Street's Collapse Sends Shockwaves Through Global Markets

9/4/2024 - The recent downturn in the U.S. stock market has had a profound impact on global financial markets. The sell-off, primarily driven by a significant drop in Nvidia's stock and disappointing manufacturing data, has led to widespread losses across Asia and Europe.

Asian stock markets experienced a severe decline following the turmoil on Wall Street. Tokyo's Nikkei 225 index fell by 4.4%, while other major markets such as Seoul, Sydney, Hong Kong, Shanghai, and Shenzhen also reported substantial losses. The negative sentiment was fueled by concerns over the U.S. economy, particularly in light of the underwhelming ISM manufacturing index.

European markets are also bracing for a challenging day, with futures indicating a downward trend. The Eurostoxx 50 futures dropped by 1.3%, reflecting the ongoing uncertainty and fear of a potential global economic slowdown. Key European stocks, including Commerzbank, Eni, Snam, and Saipem, are expected to be closely monitored as the trading day progresses.

The sell-off has not been limited to equities. Oil prices have also been affected, with a 0.4% decline as concerns over global demand persist. The recent drop in oil prices is attributed to the broader market fears and the uncertain outlook for economic growth, particularly in China.