Mexican Stock Exchange falls after Wall Street plunges

Mexican Stock Exchange fell 2.92% at 48,923.99 points after Dow Jones plunged 1,175 points
Mexican Stock Exchange - Photo: Omar López/EL UNIVERSAL
06/02/2018
13:29
Newsroom & Agencies
Mexico City
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On Tuesday, the Mexican Stock Exchange fell 2.92% at 48,923.99 points after Dow Jones plunged 1,175 points spotting a third straight day of losses.

On Monday, U.S. stocks sold off sharply as a pullback from record highs deepened and investors grappled with rising bond yields and potentially firming inflation, resulting in a drop amounted to 4.6%, the biggest decline since August 2011.

A drop in oil prices and bitcoin also may have weighed on the sentiment for risk assets overall, pulling down equities.

Thus the Mexican Stock Exchange was not alone in the tumbling as the Asian Stock Exchanges suffered on Wall Street while European Stock Exchanges opened sharply low as well.

The German Stock Index DAX opened 2.83% lower at 12,328.61 points. However, investors remained relatively calm and the dreaded fall below the psychological 12,000 mark.

The Ibex 35, the official index of the Spanish Continuous Market, tumbled 3.31% at the open at 9,731 points.

The Nikkei Index lost 4.73%, easily the biggest point decline in a trading day since 2016 while the Hang Seng Index fell 4.32% and the Shanghai Composite Index dropped 3.2%.

Analysts believe that the stock market crash responds to rising interest rates in the U.S. after the positive employment results published by the U.S. Labor Department on Friday and the change of command tapping the Federal Reserve Governor Jerome Powell to become Head of the U.S. Central Bank.

sg

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