Stocks Plunge: Nikkei Down 13%, European Shares Near Six-Month Lows

• Stock markets tumbled on Monday, with Japanese shares at one point exceeding their 1987 'Black Monday' loss, as fears of a U.S. recession sent investors fleeing from risk.
• The safe haven yen and Swiss franc surged, as crowded carry trades unravelled, sparking speculation that some investors were unloading profitable trades to cover losses elsewhere.
• Japan's benchmark Nikkei average closed 12.40% lower, its largest one-day fall since October 1987, while European shares fell to near six-month lows amid a global selloff in equities.
• A weak July payrolls report saw markets price in a high chance of Federal Reserve rate cuts, with futures implying significant cuts in the funds rate this year.
• Investors are seeking safe harbours, with the dollar falling against major currencies and gold losing some of its appeal, while oil prices eased on concerns about global energy demand.

Source: https://reuters.com/markets/global-markets-wrapup-1-2024-08-04/