Stock prices on US and European stock exchanges mostly fell on Monday as fears of a recession created instability in financial markets. The British pound fell to all-time lows against the US dollar due to these concerns, and oil prices also fell.
Wall Street’s Dow Jones Industrial Average and Standard & Poor’s 500 fell at least 1% to close the trading session at its lowest levels this year.
The London stock index rose slightly, recovering from an initial decline following the decline in the pound due to concerns about the state of the British economy. The indices of the Frankfurt and Paris stock exchanges are down.
The British pound hit an all-time low of $ 1.0350 against the US dollar on Monday. On the other hand, the value of the euro against the dollar has temporarily dropped to a new 20-year low – $ 0.9554 per euro.
Interest rates on 10-year government bonds hit a decade high in France, Germany and Italy the day after an alliance of right-wing parties won Italy’s parliamentary elections. However, the Italian stock market was bullish as the market assessed the future political landscape.
“Time will tell how successful the new will be [Itālijas] government, but the prospect of some political stability is creating a slight relief-driven rise in today’s stock market, said Craig Erlam, analyst at the online trading platform OANDA.
Oil prices fell as a strong US dollar put pressure on them and they continued to worry about oil demand.
On Monday the Dow Jones Industrial Average fell 1.1% to 29,260.81, the Standard & Poor’s 500 fell 1.0% to 3,655.04, and the Nasdaq Composite fell 0.6% to 10,802. 92 points.
London’s FTSE 100 was up less than 0.1% to 7,020.95 on Monday, Frankfurt’s DAX 30 was down 0.5% to 12,227.92 and Paris’s CAC 40 was down 0.2% to 5769.39 points.
WTI crude oil fell 2.6% to $ 78.71 a barrel in e-commerce on the New York Stock Exchange on Monday. The price of “Brent” crude on the London stock exchange fell 2.4% to $ 84.06 a barrel.
The euro fell from $ 0.9687 to $ 0.9611 per euro on Monday, the British pound fell from $ 1.0859 to $ 1.0689 per pound, and the dollar rose against the Japanese yen from 143.31 to 144.72 yen per dollar. The euro rose against the British pound from 89.29 to 89.87 pence per euro.
