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LONDON: Stock markets tumbled on Thursday as investors fretted over the prospect of more US interest-rate hikes and the risk of recession.
Wall Street extended losses, with the Dow Jones Industrial Average falling 1.3 per cent near midday.
European markets had their worst session since March 15, with London closing 2.2pc lower while Frankfurt shed 2.6pc and Paris dropped 3.1pc as the prospect of more rate hikes sent government bond yields higher.
Hong Kong led Asian losses, falling by 3pc.
Equities were weighed down heavily by minutes released Wednesday on the Federal Reserve’s last interest-rate meeting, which indicated that more hikes lay ahead aimed at bringing down elevated inflation.
While growth remains healthy for now, the prospect of more rate hikes has stoked worries that the Fed could tip the economy into recession, weighing on risk sentiment.