Share market chaos explained: what’s behind the stock meltdown and will there be a recession? | Stock markets
Fears of a US recession have gripped global markets, triggering a share market rout that prompted investors across Asia, Europe and North America to all unwind their positions – at the same time.
The severe plunge has raised questions over whether investors are facing a historic share market crash – similar to the global financial crisis or 1987’s Black Monday – or if it’s simply an overdue pull-back after a stellar period of strong returns.
What caused the market meltdown?
The volatile conditions erupted after the US Federal Reserve hinted after its 31 July meeting that interest rates would soon be cut, in what was initially seen as a stimulus for shares.
But the gains quickly evaporated as investors reinterpreted the impending…
