American stock markets had a rough start on Monday as they plummeted between 2 and 2.6 percent in the opening hour alone. The S&P 500 dropped from 4,397.94 points to 4,262.4 - roughly 3 percent and a level not seen since 20 July 2021.
The index of American technological companies, Nasdaq Composite, also dipped into the red on Monday, losing 3.64 percent from its close on Friday as of 16:55 GMT. The Dow Jones Industrial Average fared slightly better losing 2.29 percent from 21 January levels.
EU Stock Markets Fall Too
European stock markets have slid by around 3 percent during day trading. Germany's DAX index dropped from 15,604 points at the market's close on Friday to 15,130, or 3.02 percent. France's CAC-40 benchmark index lost 3.03 percent compared with its close on 21 January. Both indexes started the day with a bullish rise, but eventually turned tail to a more bearish trend.
Switzerland's stock market index showed a gradual decline, down 2.94 percent in six hours since the market's opening today. London's FTSE100 Index fared slightly better than its peers, losing only 2.27 percent as of 15:00 GMT.
The pan-European index Euronext 100 suffered, plunging 3.28 percent by 15:00 GMT as well.
Russian markets sustained even heavier losses on Monday. The dollar-denominated RTS index lost 8.11 percent in one day sliding from 1,401 points to 1,288 – a level last seen in November 2020. The ruble-denominated index of the Russian Exchange, in turn, lost 5.93 percent on Monday as of 17:00 GMT. The greenback's 3 percent growth against Russia's national currency accounts for the difference in the indexes' falls.
The falls in both American and European markets was prompted by geopolitical tensions in Ukraine, several traders told AFP. For nearly two months, politicians and media from the western nations have been speculating that Russia is planning to invade Ukraine, despite Moscow's vehement and repeated denials.
In addition to geopolitical tensions, the expected rate hike by the US Federal Reserve has been pressing markets down for the past two months as investors expect the central bank to end its economic stimulus programmes in the face of high and rising inflation in 2021.