Global stock markets sold off on Wednesday, with investors seeking the safety of sovereign bonds amid concern about the price of oil and a hard landing for the Chinese economy.
The falls came as world leaders and company executives met in Davos for the start of the World Economic Forum. Some there, including UBS chairman Axel Weber, view lower growth as the new norm, while others think the market’s reaction, including to recent Chinese growth data, has been overdone.
The FTSE 100 index entered bear territory for the first time since 2008, falling 3.5% and closing at its lowest level since November 2012. Brent crude fell 1.9% and West Texas Intermediate, the US oil benchmark, fell 6.7%.
The International Monetary Fund has cut its growth forecast for this year to 3.4% due to the weaker outlook for emerging markets.
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The Guardian, p. 1, 6, 7
The Independent, p. 49
