Financial analysts said the latest drop was triggered by a combination of events that rattled investors.Read the full story ›
The Dow Jones industrial average has dropped 2.3 percent, as traders react to the Federal Reserve's possible plan to scale-down Quantitative Easing.
A look at what happened on the various different exchanges, after the US Federal Reserve's announcement that is may withdraw its economy stimulus programme in 2014:
- FTSE 100 in London: -3pc
- CAC 40 in Paris: -3.66pc
- DAX 30 in Frankfurt: -3.28pc
- FTSE Mib in Milan: -3pc
- IBEX 35 in Madrid: -3.4pc
- Dow Jones in New York: -2.25pc
- S&P 500 in New York: -2.41pc
The US Dow Jones is on track for worst day of 2013 as stocks plummet by 2% - more than 300 points, CNBC News reports.
It comes after Federal Reserve chairman Ben Bernanke said quantitative easing could be fully withdrawn by the middle of 2014 as long as the economy continues to improve.
Global stock markets fell today after the US Federal Reserve confirmed plans to scale back its economy-boosting drive.
After weeks of speculation, the Fed said it was likely to slow its bond-buying programme this year and end it in 2014 because America's economy is strengthening.
London's FTSE 100 Index dropped 189.3 points to 6159.5, wiping almost £50 billion off the value of the top tier.
The 3% drop meant it was below the psychologically-important 6200 barrier for the first time since the start of the year.
There were even steeper losses in Paris and Frankfurt, while the Dow Jones Industrial Average started out in negative territory after closing more than 1% lower in Wall Street yesterday.
Investors in European markets are spooked after Greece's election resulted in a spilt Parliament and France elected the first Socialist president in a generation. The following stock markets were down:
- Greece's main exchange - down 8.2%
- Germany's DAX - down 1.4%
- France's CAC-40 - down 1.2%
- UK's FTSE 100 - closed for bank holiday