Asian and European markets follow US tech rout with many analysts predicting more waves of selling to come

European and Asian stock markets fell sharply on Friday after the Democrats’ decisive victory in the midterms triggered a rout in US tech stocks a day earlier.

A sell-off on Wall Street on Thursday was followed by sharp falls in Asian stock markets on Friday. The investor sentiment then reached London, where the market was, at one stage, poised for its worst day since March.

Nearly $2tn shaved off Nasdaq value as worries of curbs to AI datacenters ripple across bourses

The Nasdaq share index had its worst day in 19 months after slumping 5.5% on Thursday amid growing signs that the artificial intelligence industry will face tougher regulation because of the midterm election results.

As Wall Street sustained widespread losses, the Nasdaq composite tumbled into “correction territory” – more than 10% below its recent record high – with more than $2tn shaved off its value by the end of trading Thursday. The tech-heavy index had its biggest one-day fall since Donald Trump announced his “liberation day” tariffs on US trading partners in April 2025.

Brent crude drops by more than 6% to $105.55 a barrel, the lowest level in more than two weeks

The oil price has fallen to its lowest level in more two weeks amid new hopes of a breakthrough to end the Iran war.

Brent crude, the international benchmark, dropped by more than 6.5% to as low as $105.55 a barrel on Monday, the lowest since 16 October, sending shares in airline companies higher and pushing down government borrowing costs.