The Stoxx Europe 600 index, the region’s benchmark, experienced a 2.4% decline in morning trade, marking a 6% drop over the past five days to levels last observed in February.
An economist attributed a significant factor behind the recent market fluctuations to exuberant buying in the past. In a note on Monday, the economist highlighted that US equities, particularly in the tech sector, were excessively owned, leading to a need to clear some of the excess enthusiasm.
Taiwan’s Taiex recorded its worst day ever, closing down by 8.4%, while South Korea’s Kospi ended the day 8.8% lower. Australia’s S&P/ASX 200 also experienced a decline of 3.7%. Additionally, Hong Kong’s Hang Seng Index and China’s Shanghai Composite were down by 2.3% and 1.3% respectively.
