European stock markets suffered their worst day in nine months as a sell-off sparked by receding hopes for rapid US interest rate cuts spread around the world.
Indices in Europe and Asia fell sharply, following Monday’s steep declines on Wall Street after strong US retail sales figures that suggested the Federal Reserve might cut rates this year by less than previously thought.
The region-wide Stoxx Europe 600 fell 1.5 per cent in its biggest one-day drop since last July. London’s FTSE 100 fell 1.8 per cent, also its worst day in nine months, as declines in Europe were led by energy groups, banks, and miners, which are over-represented in the commodity-heavy index.
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