European markets ended deep in the red on Thursday as uncertainty over the disappearance of the Egyptair flight in the Mediterranean and the prospect of an earlier than expected US interest rate rise hit confidence.
Markets across Europe have been in the doldrums all day but a sharp drop for US stocks in the afternoon after Fed chief Janet Yellen’s comments last night ensured stock markets ended the day in the red.
Here’s the closing scoreboard across Europe:
- FTSE 100: -1.83% to 6,053.00
- German DAX: -1.47% to 9,797.50
- Eurostoxx 50: -1.24% to 2,919.50
- French CAC 40: -0.83% to 4,284.00
The sharp drop off has left the FTSE 100 languishing at its lowest point for two months:
Tony Cross, market analyst at stockbroker Trustnet Direct, says in an emailed statement:
It’s been over two months since we last had a triple digit down day for the FTSE-100 but that’s what today is shaping up as. The prospect of a US rate hike is driving sentiment, with losses being compounded by 17 points worth of dividends coming off the index this morning, whilst uncertainty over the cause of the Egyptian airliner crash is adding to the air of pessimism. Mining stocks are faring the worst as US rate hikes mean a stronger dollar and less demand, but Fresnillo is set to finish at the bottom of the pile with woes here being exacerbated by a broker downgrade.