Global stock markets sink on US economy fears

Stock markets across Europe and Asia slumped on Monday, spooked by fears that the US economy is heading for a slowdown.

In London, the FTSE 100 index fell by 2.1% lower while the Euronext 100 tumbled by 2.7%.

This followed sharp drops across Asia, with Japan’s Nikkei 225 plunging 12.4% or 4,451 points in the biggest fall by points in history.

It comes as weak jobs data in the US on Friday sparked concerns about the world’s largest economy.

Meanwhile, the yen has been strengthening against the US dollar since the Bank of Japan raised interest rates last week, making stocks in Tokyo more expensive for foreign investors.

Stock markets in Taiwan, South Korea, India, Australia, Hong Kong and Shanghai all tumbled.