That followed the lead of Wall Street where the Dow Jones closed 4.5% lower.
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The Dow Jones Industrial Average dropped as much as 1,600 points heading in the closing of the session on Monday, after a sharp, accelerated period of selling.
The leading U.S. stock market index on Monday closed down 4.6 per cent at 24,345.75, BBC reported.
The pan-European FTSEurofirst 300 index lost 1.51 percent and MSCI’s gauge of stocks across the globe shed 2.96 percent.
The sell-off in US stocks this week spread to markets in Asia and Europe, reviving use of the term “contagion”, which was widely used during the European debt crisis early this decade.
In early Europe trading London’s FTSE 100 was down 3.5 percent at 7,081 points.
But instead, markets dropped sharply Friday, and that trend continued Monday.
“The buy-the-dip mentality that has taken over hasn’t allowed for that”.
It’s been a rough few days for the stock market.
Keep the sell-off in perspective, warned Kristina Hooper, chief global market strategist at Invesco.
Several of these services went down Monday, one of the first times they’ve come up against adversity in the stock market, as Bloomberg notes.
“We all knew there was a correction coming at some point”.
Mnuchin said that he was not “overly concerned about the market volatility. So, I definitely think: be watchful”.
Within seconds, the Dow Jones industrial average was down more than 500 points.
The Standard & Poor’s 500 index dropped 20 points, or 0.7 percent, to 2,741. At the opening bell, the Dow sank more than 500 points. The Nasdaq composite was little changed at 6,968.
Tuesday is marked by a return of volatility to the equities market that have been absent for quite some time.
Global markets also fell. Japan’s Nikken was off 4.73%, while China’s Hang Seng Index fell more than 5%.
The Dow closed at 24,345.75 points.
Some analysts have cautioned the decrease in an unusually strong market could merely be a correction, which considers any drop below 10% healthy.
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The swoon began Friday as investors anxious that accelerating inflation and higher interest rates could derail the market’s record-setting rally.
