Global stock markets are deteriorating.

Following significant dips in the US and Asia, fears of increasing costs and faltering economies have moved to the UK and European stock markets.

In early trade, the FTSE 100 index of prominent corporations fell 1.5 percent, while the big stock markets in France and Germany also fell.

On Wednesday, US stocks fell the most in a single day since the beginning of the Covid epidemic in 2020.

Gloomy projections from big US retailers rattled the markets.

Countries are also dealing with substantial increases in inflation – the UK’s hit a 40-year high of 9% in April – and there are fears that certain economies could stagnate when interest rates are raised in a bid to combat this.

“A red wall of anxiety has risen up throughout financial markets, with investors becoming increasingly concerned that economies are on the verge of entering recession,” Susannah Streeter, senior investing and markets analyst at Hargreaves Lansdown, said.

The FTSE 100 sank 113.57 points to 7,324.52 in early trade, while the Cac-40 index in France and the Dax in Germany also fell 1.8 percent and 1.9 percent, respectively.

In Asia, the Nikkei index in Japan fell 1.9 percent, while the Hang Seng in Hong Kong fell 2.5 percent.

The Dow Jones Industrial Average fell 3.5 percent on Wednesday after the S&P 500 index, which tracks shares of a broad range of America’s largest corporations, fell more than 4%.

The Nasdaq, which is dominated by technology, dropped 4.7 percent. The losses came on top of weeks of losses on US financial markets.

Target claimed unexpectedly high gasoline and freight costs had slashed into profits, which had half compared to a year ago, causing significant declines on US markets.

It also stated that when prices rise, consumers are spending more on necessities and less on luxury products like televisions and clothing.

Target’s remarks came after Walmart’s similarly gloomy report earlier this week.

“After seeing Target, people are scared that additional earnings [estimates] may have to be lowered,” said Thomas Hayes, chairman of Great Hill Capital in New York.

“Consumer confidence is at multi-year lows and is inextricably linked to inflation.” People are waiting for signs of inflation easing, and Target has failed to deliver.