Global markets faced historic selling pressure in the new week after recession fears in the US gained momentum.
Concerns that economic activity in the US may slow down more sharply than expected are causing deepening selling pressure.
After the data in the employment report announced in the country increased concerns about recession, the sales-heavy trend seen in global markets last week is seen to continue in the new week.
As demand for safe haven assets strengthened amid recession concerns, the yield on the 10-year Treasury bond in the US fell to 3.68 percent, the lowest level since June 26, 2023.
Index futures contracts in the US also saw declines exceeding 4 percent.
Losses on European stock exchanges exceeded 2 percent. The Nikkei 225 index lost 17.5 percent of its value in the last two trading days alone, compared with a record high of 42,426 points on July 11 this year, a loss of 25 percent.
Thus, the VIX Index, which shows the fluctuations in the S&P 500 Index in the USA and is also known as the “fear index”, reached a 4-year high of 51.01.
While it is almost certain that the US Federal Reserve (Fed) will cut interest rates by 50 basis points next month, analysts say there is a possibility that the bank may hold an emergency meeting to calm concerns in the markets.