DOW Falls Almost 1200 points, Markets Internationally Also Falling

Shanghai recovered to end 0.7 percent higher

The FTSE 100 opened 3.5% lower but recovered some of those losses by the close.

Futures on Japan's Nikkei 225 Stock Average rose 4 per cent in Chicago trading.

For some analysts, the sell-off was expected after stocks in Asia climbed to record highs in some cases.

Oil prices also dropped, with worldwide benchmark Brent futures hitting a one-month low of $66.90 per barrel on Monday.

The Dow Jones closed 4.6% down yesterday at 24,345 points - its worst daily points decline in its 122-year history and wiping out all of 2018's gain - while the S&P 500 recorded a loss of 4.1% to trade at 2,649.

The dollar was changing hands at ¥109.43 today against ¥109.57 in NY. The slide comes after many banks in the US and United Kingdom considered banning customers from buying cryptocurrencies using their credit cards.

U.S. Treasury debt prices were last down slightly.

The Nikkei was trading down 5.3 per cent at 21,490.63 in midmorning trade, the lowest level since October 20.

"Traders are getting nervous there is more to come", said Greg McKenna, chief market strategist at currency trading platform AxiTrader. That had led some experts to warn that markets were overdue for a correction.

'There are four stages of a fall: hope, greed, panic and fear. The warning pushed up the pound, which gained 0.8 percent on the dollar to $1.3990.

After all, the global economy continues to grow strongly and corporate earnings are largely good.

The Shanghai Stock Exchange composite index also saw a sharp 3.4 per cent loss, after remaining immune on Monday.

So investors now have "a choice about where to put their money", says David Kuo of Motley Fool.

European stocks were hit on Tuesday, with benchmark indexes in Paris, London and Frankfurt dropping 2%.

Some analysts view the recent selloff, which began last Friday amid concerns over higher interest rates and lofty valuations, as a healthy pullback after a rapid run-up to record highs at the start of the year.

But the United States markets' futures indexes were down 1 percent or less.

The blue-chip index has now lost 5.9 per cent of its value since hitting an all-time high of 7792.56 on January 12 - costing investors £117.6billion.

The original trigger for the US stock market sell-off was a sharp rise in USA bond yields late last week, after data showed USA wages increasing at the fastest pace since 2009.

The White House yesterday admitted it was anxious.

Markets in India also slumped by almost 3% in response to the global markets and weak domestic sentiment.

Two days of steep losses erased the USA market's gains from the start of this year, ending a spate of record-setting calm for stocks with a pullback that market pros have been predicting for some time. It's hard to tell how far markets may decline, but given that economic fundamentals remain strong, I think investors will start buying the dips sooner than later.

"Some deep-pocketed funds may have stepped in to hoover up what they could - in this context it looks for the time being like the correction was exactly what the market needed - although we have a long way to go today still and sentiment is still fragile after two bruising sessions".

'We have got 5 per cent already.

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