US stock markets have fallen sharply in a renewed sell-off as global share prices looked set for a grim end to the year.
New York's Dow Jones Industrial Average tumbled by more than 500 points, or about 2%.
It followed a drop-off in London where retailers were in focus after a profit warning from online fashion retailer ASOS that also sent the likes of Marks & Spencer and Next lower, dragging the FTSE 100 down by more than 1%.
A fall in the oil price – with Brent crude dipping below $60 a barrel – did little to help sentiment.
Markets in Europe also turned lower.
Investors have traditionally looked for a "Santa rally" in stocks as the end of the year approaches but a cocktail of global worries has cast a dark mood over equities in recent weeks.
Fears for US economic growth, tied up with the fall-out from Washington's trade spat with Beijing, are among them.
Added to the worries this week are the likelihood of another increase in interest rates by the US Federal Reserve on Wednesday – a hike vocally opposed by Donald Trump.
Sparking Monday's sell-off was reaction to a federal judge's ruling late on Friday that former president Barack Obama's healthcare act – which mandated people to buy health insurance – was unconstitutional, sending shares in the health sector lower.
Wall Street-listed retail and technology shares also fell, together with utilities and real estate companies.
Analysts pointed to comments from influential investor Jeffrey Gundlach, chief executive of DoubleLine Capital, about the current environment for stocks.
Oliver Pursche, chief market strategist at Bruderman Asset Management, said: "The markets right now are emotionally drained and are very prone to sell-offs.
"It's really about sentiment, and the Gundlach statement didn't help the market."
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Analysts at Rabobank said: "If Santa Claus doesn't turn up very soon, US stocks may end this year in negative territory."
A research note from broker Bernstein said: "Some investors whom we had spoken to had positioned themselves for a December tally and the path has been painful."
US stock markets have fallen sharply in a renewed sell-off as global share prices looked set for a grim end to the year.
New York's Dow Jones Industrial Average tumbled by more than 500 points, or about 2%.
It followed a drop-off in London where retailers were in focus after a profit warning from online fashion retailer ASOS that also sent the likes of Marks & Spencer and Next lower, dragging the FTSE 100 down by more than 1%.
A fall in the oil price – with Brent crude dipping below $60 a barrel – did little to help sentiment.
Markets in Europe also turned lower.
Investors have traditionally looked for a "Santa rally" in stocks as the end of the year approaches but a cocktail of global worries has cast a dark mood over equities in recent weeks.
Fears for US economic growth, tied up with the fall-out from Washington's trade spat with Beijing, are among them.
Added to the worries this week are the likelihood of another increase in interest rates by the US Federal Reserve on Wednesday – a hike vocally opposed by Donald Trump.
Sparking Monday's sell-off was reaction to a federal judge's ruling late on Friday that former president Barack Obama's healthcare act – which mandated people to buy health insurance – was unconstitutional, sending shares in the health sector lower.
Wall Street-listed retail and technology shares also fell, together with utilities and real estate companies.
Analysts pointed to comments from influential investor Jeffrey Gundlach, chief executive of DoubleLine Capital, about the current environment for stocks.
Oliver Pursche, chief market strategist at Bruderman Asset Management, said: "The markets right now are emotionally drained and are very prone to sell-offs.
"It's really about sentiment, and the Gundlach statement didn't help the market."
More from Business
Analysts at Rabobank said: "If Santa Claus doesn't turn up very soon, US stocks may end this year in negative territory."
A research note from broker Bernstein said: "Some investors whom we had spoken to had positioned themselves for a December tally and the path has been painful."
