European markets have followed Asian markets lower on Tuesday as investors continued to dump shares.
London, Frankfurt and Paris all fell sharply at the open with losses of up to 3%, before recovering some ground. In the US overnight the Dow lost 4.6%.
Japan’s Nikkei 225 closed down 4.7%.
The sell-off began last week after data in the US showed stronger wage growth, which raised expectations that US interest rates might start to rise more quickly to tackle inflation.
London’s FTSE 100 was down 150 points or 2% at 7,184.74 in mid morning trade. Frankfurt’s Dax and Paris’s CAC were down 2.2% and 2% respectively.
On Monday the FTSE 100 closed at its lowest level since April of last year.
The falls follow some good years for investors.
In 2017 the Dow in the US was up 25% and London’s FTSE 100 rose 7.6%.