Until late last week the markets in Europe and the US remained relatively stable amid sell-offs in Asia on Monday already tidal wave flooded exchanges and west. Trade in Europe and the US began with the mass decreases in the leading indices. Against the background of continuing decline in commodity prices index STOXX 600 Basic Resources Index, which vlyuchva mainly companies from the mining sector and the fuel sector losses respectively 5.5% and 3.2%. Leading shares in the euro area, whose presentation is united in meter Euro STOXX 50, also lost nearly 4%. At 18.30 hours the British FTSE 100 fell by 4.12 percent, Germany’s DAX index fell by 3.86% and the French CAC 40 – by 4.74%.
Among the biggest losers were mining companies Anglo American, Glencore and BHP Billiton, which, according to Societe Generale (SG) are among the companies with the greatest exposure to China in the next financial institution basket of shares. Shares of Anglo American fell by 5.8%, Glencore record drop of 5.5%, while shares in BHP Billiton fell by 5%.
Shares of technology companies also collapsed at the beginning of the US trading session on Monday. Among companies with large losses are Apple’s more than 5%, Oracle by nearly 5%. It is a modest loss at Microsoft – just over 3%. Realized losses and companies in the industrial sector – in Dow Jones’s biggest loser after the start of trading on Wall Street is Coca-Cola over 6% and EI du Pont de Nemours and Company with the same decline.
Immersion in the markets means that the probability the Federal Reserve to raise interest rates next month continued to decrease. Former Finance Minister of the United States Larry Summers, who was the main rival of Janet Yellen to succeed Fed chairman said in the publication Financial Times, that interest rates rise now would be a wrong move because it would expose the financial system to the risk of crisis with unpredictable and dangerous results.