FTSE, Asian indexes slide as Dow Jones drops 4.2 per cent

Asian shares sank on Friday as there were sharp falls on Wall Street last night as Dow Jones ended trading session 4.2 per cent lower — dropping more than 1,000 points for the second time in a week.

According to analysts, yesterday’s declines mean the Dow and S&P 500 have now fallen by more than 10 per cent from the record highs set in January, a threshold that analysts call a correction.

Over $5 trillion has been wiped from global stock markets since January 26, according to S&P Dow Jones Indices.

Indices across Europe and Asia were in the red, with China’s Shanghai Composite Index at one point dropping more than 5 per cent while Hong Kong dipped more than 4 per cent.

In London as well, the FTSE 100 was down 0.6 per cent in the early hours of trading — hitting a low of 7,131.10. Meanwhile, Germany’s Dax has dropped 0.1 per cent, France’s Cac is 0.2 per cent lower and Italy’s FTSE MIB has fallen 0.57 per cent.

As a result of this continuing volatility at the Wall Street, the euro has risen against the US dollar.