With the prospect of another bloody US session on the horizon, the European losses ramped up to some truly ugly levels.
At this point it appears that momentum – stemming not only from the various macro issues plaguing the markets, but the fact the Dow Jones was arguably overdue a correction – is playing a huge part in driving the global indices lower.
The FTSE suffered worst, plunging 200 points to deepen the 6 month lows it has been hitting all week; it has, however, managed to avoid ducking under the key 7000 mark. The DAX, meanwhile, was down 170 points, tumbling below 11600 in the process, with the CAC shedding 1.5%.
Turning to this afternoon and the Dow Jones is set to join the its peers in the casualty room, with the futures pointing to a 350 point drop, one that would take it the wrong side of 25300 for the first time in almost 2 months. However, what the Dow actually does when the bell rings on Wall Street could end up being drastically different, dependant on what happens with the US inflation reading. Analysts are expecting the regular figure to remain unchanged at 0.2%, but with the core number to rise from 0.1% to 0.2%.
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