Yellen byte bleeds world stock markets badly

World stock markets slumped on Thursday, gripped by yet another fierce sell-off after a warning by Federal Reserve boss Janet Yellen over the global economy, while oil fell close to 12-year lows. New York’s Dow Jones Industrial Average sank overnight as Yellen also appeared to play down the chances of another US interest rate hike any time soon. The news sparked a renewed sell-off in Asia today, with Hong Kong stocks tumbling as investors also played catch-up after a three-day break for the Chinese New Year. The intense selling spilled over into Europe, with Athens shedding six per cent and Milan diving five per cent in morning deals, while Paris lost almost four per cent. Frankfurt and Madrid stocks shed more than three percent, while London dipped 2.7 per cent. “The Fed chair inspired a wave of panic late in the American session that has fed through Asia and turned up on Europe’s doorstep,” Spreadex analyst Connor Campbell told AFP.