Recently statistics and figures indicated the Economy of Germany and France running to a halt this month. According to the data china is also going to fall into an economic downturn. As last night this fear of global economy downturn spread, global stock market, oil price and the Euro plunged. This continuous bad news out of the US plunged the stock market in jeopardy. Within Europe French market endured the worst shares down of 5.25 pc. Top German shares finished the day off 4.96 pc. The ISEQ had shares down over 3.5 pc. From the Britain’s largest companies Overall £64bn (€73bn) was wiped off. The all stock markets were fuelled by the fear of global economic recession.
Since March 2009, at the time when traders feared that Barclays was going to be nationalized, the FTSE 100 had its biggest one day drop of 4.7pc last day. This fear of recession came into being because the Purchasing Managers Index (PMI) statistics showed the entire Euro zone as a large shrank current month again. If this is true then this will be the second time within last three years. The PMI data always calculated that the manufacturing and service sectors are good health indicator for private sector. Latest data showed that the two giant France and Germany had no growth. So the fear spread and the markets fell. The output of manufacturing fell for a second time in a row as well as services went off for the very first time since August 2009. The same thing is happening to Chinese economy. The data illustrated that the manufacturing will go down for the third month in a row. It is going to be the biggest since 2009. According to the statistics the world economy is going into a possible recession again. And this rumors and fears will set the stage for big down turn in the markets. The US stock markets got down for the fourth day in a row.
The Standard & Poor’s 500 Index of stocks were off 7.4pc from their total within a day. Oil prices fell more than 4pc in London as well as the copper off to a one year low. Oils and Metals are always assumed as indicators of growth and as these are falling investors started to believe that the Economy is going to fall. These came as the potential stakeholders ditched in high-risk assets, these are progressively observed to comprise the Euro, in favor of that stays for a great amount of the ultimate risk-free haven investment.
