(Express.co.uk) -- Global markets have been plunged into chaos today with stocks plummeting in Europe and Asia following Wall Street’s worst day since February. Shares sank into a sea of red as world markets slumped to their lowest level in eight months, according to data provider MSCI.
Investors have been rattled about rapidly rising interest rates and an expected slowdown in global economic growth.
While in Europe, the market has also felt the ripple effects of the ongoing fallout between Italy and European Union chiefs over Rome’s deficit budget proposal.
The FTSE 100 opened down 1.6 percent, while the pan-European Euro Stoxx 600 Index had dropped by 1.2 percent in early deals.
In Italy, the FTSE MIB had tumbled by 1.5 percent this morning.
Markets also sunk this morning in Asia, with Japan's benchmark Nikkei 225 losing 3.9 per cent, its biggest daily drop since March.
China witnessed its lowest stock market level in almost four years, while the Shanghai Composite ended the day down 5.2 percent.
The turbulent start for investors comes after the US stock market tumbled, with the Dow Jones Industrial Average sinking last night by more than 800 points.
The S&P 500 fell to a fifth-day straight loss yesterday, the longest slump since President Donald Trump was elected, as Wall Street endured its sharpest one-day fall in months.
The crumbling of global markets comes following concerns from investors surrounding global economic growth and rising interest rates.
The Federal Reserve is raising interest rates which makes it more expensive for companies to borrow and harms share prices.
The rout suggests businesses are not able to sustain the runaway growth that is marked 2018 so far.
Investors are nervous a trade war would slash profits.
President Trump described the Fed as having “gone crazy” after walking off Air Force One in Erie, Pennsylvania for a rally.
He said: ”I think the Fed is making a mistake. They are so tight. I think the Fed has gone crazy.
"Actually, it's a correction that we've been waiting for a long time, but I really disagree with what the Fed is doing.”
The International Monetary Fund downgraded its predictions for global growth this week, and is now forecasting 3.7 percent global growth in both 2018 and 2019.
This is down from its July forecast of 3.9 percent growth for both years.
Maurice Obstfeld, the IMF's chief economist, pointed part of the blame to growing tensions between the US and China, who are currently locked in an increasingly bitter trade war.
Mr Obstfeld said at a media briefing about the fund's latest World Economic Outlook: "When you have the world's two largest economies at odds, that's a situation where everyone suffers.”
He continued: ”Trade policy reflects politics and politics remain unsettled in several countries, posing further risks.”