Stock markets tumbled after the fed chair’s testimony

On Thursday stock markets declined sharply due to investor concerns the world economy after estimates made by the head of the fed Janet Yellen and the ongoing fall in oil prices, writes The Wall Street Journal. The European Stoxx Europe 600 index lost 3.31 per cent in morning trading, while stocks declined the most shares of banks and mining companies, the newspaper notes.

In Asia, Hong Kong’s Hang Seng index lost 3.9 percent, dropping to the lowest level since June 2012. The index of Chinese companies trading with Hong Kong fell 4.9% to the lows of 2009. Japanese markets are closed today on account of holiday but for the week the Nikkei fell by 6.6%, reminds WSJ.

The Russian RTS index fell by 3,51% and MICEX — by 2.04%. The leader of decline in the Russian stock market were shares of VTB, decliners by two o’clock on 3,01% to RUB 0,0676

Speaking Wednesday in front of Congress with an assessment of the economic situation, Yellen said there are risks to sustained economic growth and the threat of low inflation, resulting in plans for another rise in the key rate will probably be postponed. “The financial situation in the United States has recently become less favorable for growth, with lower prices on a wide range of securities, increased rates of lending to at-risk borrowers and a further strengthening of the dollar,” she said.

14:03 Moscow time the barrel of oil with delivery in April was worth on the London exchange ICE $30,49, which was 1.15% below the closing price. WTI in new York has decreased by 2,93%, dipping below $27/bbl. Up to $26,62.

The fall in oil prices is causing investors concerns about the global economic Outlook and possible impact from bankruptcies in the energy sector and the recession in countries that depend on energy exports, says WSJ. The newspaper reminds that the periods of growth in the stock markets this year were short-term, helped by uncertainty in the policy of Central banks and uncertainty in global economic growth, the devaluation of the Chinese currency and reduce the cost of oil.