London’s FTSE 100 fell below 7000 after the weekend kicked off on a strong note following a sharp drop in US markets.
The FTSE 100 blue-chip index fell from a daily high of 7,034 to 6,923, shedding 46 points. The FTSE 250 index, targeting the domestic market, also fell 167 points to 22,330 points.
The initial rally after a long weekend was fueled by travel stocks in hopes of easing travel restrictions and recovering the economy. However, when the trading session began on the other side of the pond, the sell-off also brought down London stocks.
US indices fell on sharp declines in metropolitan stocks following Treasury Secretary Janet Yellen’s comment on the rise in interest rates, which prompted investors to move money to more defensive parts of the markets.
The Nasdaq fell 261 points, or 1.88 percent, to 13,633, while the S&P 500 shed 28 points, or 0.67 percent, to 4,164. The Dow Jones Industrial Average recovered its previous losses and closed slightly higher. rising 19 points, or 0.06 percent, to 34,133.
The value of securities of technology companies, including Microsoft, Alphabet, Apple, Amazon and Facebook, fell from 2.3% to 4.2%.
Ms Yellen said rates are likely to rise as government spending rises and the economy responds with faster growth.
Stock markets in Japan, South Korea and China remained closed on Wednesday due to a national holiday, but the impact of global markets left the Hang Seng and MSCI depressed, with the Hong Kong index trading unchanged and the broadest Asia Pacific stocks outside Japan rebounded. from daily lows.
Meanwhile, Indian stocks hit a good start Wednesday morning ahead of a scheduled press conference by the Reserve Bank of India governor. All sectors remained positive, with the Sensex opening 250 pips higher and the Nifty trading above 14,550 pips in the early hours.