On Monday, Japan's Nikkei index suffered a historic 12% drop, its biggest single-day plunge since the infamous "Black Monday" of 1987. This crash not only shook Japan, but also had repercussions on European stock exchanges and the cryptocurrency market.
Fears of recession in the United States
The Nikkei' s plunge was driven by growing fears of a U.S. recession. Friday's disappointing employment data increased investor uncertainty, driving the Japanese index to a drop not seen since October 1987. This phenomenon is a clear indication of the vulnerability of international markets to U.S. economic fluctuations.
Impact on European stock markets
The domino effect did not take long to reach Europe. The main European indices recorded falls of close to 3%. This reaction is a direct consequence of the weakness of the Japanese market and global fears of a recession. The situation is exacerbated by the rise of the yen to a seven-month high against the dollar, further complicating the economic outlook.
Cryptocurrencies in free fall
Cryptocurrencies were not immune to this black Monday. Ethereum recorded a 14% drop in the last 24 hours, while Bitcoin fell more than 10%. This volatility in the cryptocurrency market reflects the general instability and nervousness of investors in the face of a possible global recession.
A historic day for the Nikkei
The Nikkei's plunge is not only significant for its magnitude, but also for its speed. The Nikkei stock average plunged a staggering 12.4%, taking the index down 27% from its July 11 peak. From that day to Monday's close, the Nikkei has lost 113 trillion yen, equivalent to $792 billion, from its peak market value.
Long-term consequences
This black day in international markets could have long-term repercussions. The fall of the Nikkei, together with the weakness of European stock markets and the volatility in the cryptocurrency market, raises serious doubts about global economic stability. Investors and analysts will be watching for further market movements and the economic policies that governments may implement to mitigate the effects of this crisis.
The collapse of the Japanese Nikkei index has triggered a series of falls in international markets, reflecting the fragility of the global economy in the face of fears of a recession in the United States. Uncertainty and volatility will continue to set the tone in the coming days, and the consequences of this black Monday will be felt for a long time to come.
