European Stocks Plummeted &Nbsp, And Bank Resources Shares Took The Lead.

On Friday morning, Beijing time, the European stock market crashed on Thursday, and banks, mining and oil shares suffered heavy losses. Investors were disappointed by the plan of the Federal Reserve to buy short debt. The latest economic data show that the private sector in the euro zone is stagnant.

Global Stock echange crash The US stock market also failed to escape.

Pan European Dow Jones Stoxx 600 index fell 4.6%, closing at 214.89 points.

The Federal Reserve announced on Wednesday that it would reduce long-term interest rates through the $400 billion long term treasury bonds and short-term Treasury swap program to promote economic growth. The Fed acknowledges that the downside risks of the US economy have increased significantly, and the turmoil in the global financial market has also adversely affected the economy.

Market watchers point out that the Fed's decision is entirely in line with market expectations, and the Fed's warning of the economy has only encouraged the timid investors to stay away from the stock market. The U.S. economic and Trade Bureau said Thursday that the US economy is in progress. Autumn There is still a slow growth trend in winter.

Steen Jakobsen, chief economist of Sheng Bao bank, said, "I think no one is willing to go to the market to take risks. At present, the market has lost its way."

He believes that the European stock market will be adjusted downward 10%, the US Standard & Poor's 500 index will be down to 1000 points and 1050 points.

Jakobsen said, "the market finally realized that all discussions on austerity measures obscure the real problems, employment and economic development."

He said that the eurozone debt crisis has also deteriorated in addition to people's disappointment with the Fed. Greece announced on Wednesday that it would cut more civil servants and further reduce its pension, which is now trying to get a new round of aid.

Almost all markets have fallen sharply, benefiting from risk aversion capital Inflow, the dollar has soared. The cost of loans in Spain and Italy has reached a record high, and even the German five year credit default swap spreads have risen sharply.

Banks, energy and mining shares suffered heavy losses. The Fed's worries about the economy have dealt a heavy blow to resource stocks.

HSBC's September China purchasing managers' index fell to a low of two months, reflecting the slowdown in China's economic growth, while China is the largest consumer of natural resources. The Fed and HSBC China PMI are important reasons for the Hongkong stock market crash.

The euro area composite purchasing managers index fell to 49.2 in September, reflecting the first decline in the private sector vitality in the euro area in more than two years. If the index is below 50, it means that the manufacturing industry is shrinking.

Standard & Poor's lowered the long-term debt rating of several Italy banks on Wednesday. Yu Xin Bank fell 6.3%, and the Italy financial times MIB index fell 4.5%.

Societe Generale (12.81, -0.38, -2.88%) fell 9.6%, and the Bank of Paris, France, fell 5.7%. The French CAC 40 index fell 5.3%, closing at 2781.68 points.

According to the Financial Times reported on Thursday, senior officials are urging French regulators to carry out emergency stress tests on banks to find loopholes in the French banking industry. The Bank of Paris, France, retorted that the report was "Utopian".

The report also revealed that Paris bank executives in France plan to seek funds in the Middle East. The Bank of Paris responded that the company is conducting a roadshow to global investors in order to arouse investors' interest in the company.

Affected by the slump in the commodity market, resource stocks fell sharply. The French oil giant Total dropped 5.7%, British Petroleum fell 5%, and Royal Shell in Holland dropped 3.4%.

The FTSE 100 index fell 4.7%, closing at 5041.61 points. Rio Tinto fell nearly 11%, and BHP Billiton fell 8%. New York gold futures fell nearly US $70.

The German DAX 30 index fell 5%, closing at 5164.21 points. Daimler dropped 7.5%, chemical group BASF fell 4.5%, SIEMENS fell 4.2%.

Logitech international plunged 11.7%, the company issued third performance warning in 6 months on Wednesday.