On Monday, the share markets of Europe closed at a low as a follow up of the last week’s session of heavy selling stateside.
Before the Christmas holidays, the FTSE closed at a low by 0.6 percent. This was during a short session prior the holidays for Christmas. The CAC 40 of France also witnessed a fall of 1.5 percent during the same time.
DAX of the Germany along with MIB FTSE of Italy were not open on Monday.
Considering the corporate news, on Monday the government of South Korea hit BMW with a fine of 11.2 billion which is equivalent to $9.96 million.
The company also faces a complaint over the delaying of recalls as well as concealing the defects, both of which are alleged and have resulted in the fires in the engines in the country.
There was plunging in the stocks on Friday. The Dow Jones Industrial Average has suffered its worst week in the history as well as the NASDAQ Composite witnessed a slip into the bear market.
The S&P 500 index is also at the verge of falling into the bear market.
There are concerns and worries amongst the investors regarding the slowdown of the economic growth. And as was expected, there was a rise in the interest rates for the fourth time by the Federal Reserve last week.
This was during the monetary policy meeting of the Fed. However, unlike the anticipation of many traders, the central bank of the United States was much less dovish.
But many are still worried that Fed may be tightening the policies way too fast.
Over the weekend, Steven Mnuchin, the Treasury Secretary also held the calls with the top bankers of the United States in the wake of the recent slide of the equities in the market.
Source: CNBC, Market Watch
