Stocks on the Athens Exchange followed the downward spiral in stock markets worldwide on Monday over fears of a US recession.
Share prices plummeted 4.38 percent at the opening of trade on the Athens Stock Exchange on Monday, following the sell-off in European and international markets.
The market dropped below 1,400 points as fears of a US recession drove European stock markets to a six-month low, and Japan’s Nikkei crashed 12.4 percent at the close of trade— the biggest drop in its history.
The basic share price index was down 4.38 percent at 1,368,26 points at 11:00 AM, and turnover was 28.14 million euros.
The FTSE/ASE Large Cap index for blue chip and heavily traded stocks was down 4.69 percent, and the FTSE/ASE Mid Cap index was down 4.52 percent. Of the stocks traded, none were up, 92 were down and 9 were unchanged.
Fears of US recession hit stock exchanges worldwide
Stock exchanges from Asia to Europe took a beating, and bond yields slid as investors rushed to safe-haven assets and bet the US Federal Reserve would need to cut interest rates quickly to spur growth.
The sell-off comes as weak jobs data in the US on Friday sparked concerns about the world’s largest economy. In July, US employers added 114,000 roles, far fewer than expected while the unemployment rate ticked up from 4.1 percent to 4.3 percent. The figures raised concerns that a long-running jobs boom in the US might be coming to an end.
At the same time, the US Federal Reserve held off on cutting interest rates last week in contrast to other central banks, such as the Bank of England.
There has also been concern that shares in technology companies, such as those focused on artificial intelligence (AI), have been overvalued and are now facing difficulties.
US stock index futures tumbled on Monday, with those tied to the Nasdaq sliding almost 5 percent.
Apple slumped 8.4 percent after Berkshire Hathaway slashed its stake in the iPhone maker by almost 50 percent, suggesting that billionaire investor Warren Buffett is growing wary of the broader US economy or stock market valuations that have gotten too high, Reuters reports.
Nvidia slid 9.7 percent after reports of a delay in the launch of its upcoming artificial intelligence chips due to design flaws. Microsoft fell 4.7 percent, while Alphabet slid 6 percent.
Crypto-linked stocks fell after Bitcoin hit its lowest in five months. Coinbase Global was down 13 percent, while MicroStrategy and Riot Platforms were down 15.8 percent and 12.2 percent, respectively.
Large US lenders were down, with Bank of America leading the losses with a 4.5 percent fall.
Related: John Koudounis on Interest Rates, Inflation, Recession Fears, Crypto and AI