Friday

20th May 2022

European markets tumble amid fears on global growth

  • Weaker-than-expected employment and manufacturing in the US sparked the market turmoil (Photo: Travel Aficionado)

European markets had their biggest fall since March 2009 on Thursday (18 August) amid concerns over the state of the global economy and the ability of the eurozone to deal with its debt crisis.

London's FTSE 100 index ended the day down 4.5 percent while Germany's DAX lost 5.8 percent. US stocks were also down substantially, with the Dow Jones 3.68 percent lower at the close of day.

Read and decide

Join EUobserver today

Become an expert on Europe

Get instant access to all articles — and 20 years of archives. 14-day free trial.

... or subscribe as a group

The turmoil came as figures in the US showed no improvement in the employment rate and worsening manufacturing conditions in the East Coast region.

A Morgan Stanley report warning of a global economic slow down and possible recession in the US and the EU contributed to the market fears as did an article in the Wall Street Journal claiming that US regulators were examining US exposure to European banks.

Politicians on both sides of the Atlantic sought to play down fears.

"I don’t think we're in danger of another recession, but we are in danger of not having a recovery that is fast enough to deal with a genuine unemployment crisis for a whole lot of folks out there," US president Barack Obama told CBS.

"And that's why we need to be doing more."

European Council president Herman Van Rompuy on Thursday said: "We do not ... foresee negative economic growth, a recession [in Europe]."

Markets have been sceptical since a highly-anticipated meeting between eurozone heavyweights France and Germany on Tuesday (16 August) failed to deliver immediate solutions to the eurozone debt crisis, which has recently threatened to engulf Spain and Italy.

In addition, markets have also been reacting negatively to the news that Berlin and Paris want to revive the idea of a financial transaction tax and that it should apply to the whole of the EU.

World markets plunge amid worsening euro-crisis

Stock markets plunged on Thursday to levels last seen in 2008 at the height of the financial crisis, amid worsening concerns about the US economy and Europe's capacity to overcome their debt problems.

Commission grilled on RePowerEU €210bn pricetag

EU leaders unveiled a €210bn strategy aiming to cut Russian gas out of the European energy equation before 2027 and by two-thirds before the end of the year — but questions remain on how it is to be financed.

MEPs raise ambition on EU carbon market reform

MEPs on the environment committee agreed on reform of the European carbon market — including expanding it to buildings and transport. They also want to extend the scope of the carbon border tax, and phase out free permits by 2030.

Commission grilled on RePowerEU €210bn pricetag

EU leaders unveiled a €210bn strategy aiming to cut Russian gas out of the European energy equation before 2027 and by two-thirds before the end of the year — but questions remain on how it is to be financed.

News in Brief

  1. Half of Gazprom's clients have opened rouble accounts
  2. Macron seeks 'quick' EU answer on Moldova application
  3. German chancellor to tour Western Balkans
  4. UN: more than 8,000 civilians killed or injured in Ukraine
  5. EU agrees new minimum gas storage target
  6. EU justice agency to have more roles on war crimes
  7. More than 50,000 Ukrainians refused entry into EU in 2021
  8. Germany open to EU treaty change 'if required'

Stakeholders' Highlights

  1. Nordic Council of MinistersNordic delegation visits Nordic Bridges in Canada
  2. Nordic Council of MinistersClear to proceed - green shipping corridors in the Nordic Region
  3. Nordic Council of MinistersNordic ministers agree on international climate commitments
  4. UNESDA - SOFT DRINKS EUROPEEfficient waste collection schemes, closed-loop recycling and access to recycled content are crucial to transition to a circular economy in Europe
  5. UiPathNo digital future for the EU without Intelligent Automation? Online briefing Link

Latest News

  1. MEPs urge sanctioning the likes of ex-chancellor Schröder
  2. MEPs call for a more forceful EU response to Kremlin gas cut
  3. Catalan leader slams Pegasus use: 'Perhaps I'm still spied on'
  4. More EU teams needed to prosecute Ukraine war crimes
  5. French EU presidency struggling on asylum reforms
  6. EU states warn of looming food-price crisis
  7. Ultraconservatives in Putin's shadow
  8. Nordic Bridges unveil latest highlights of Spring programme

Join EUobserver

Support quality EU news

Join us