$4trn wiped off as european stocks plummet

A rout swept through European and Asian stock markets in the wake of the biggest sell-off on Wall Street in six years as a sudden burst of turmoil shattered the long period of calm.

It has estimated that about $4 trillion has been wiped from the value of the markets.

Wall Street on Monday suffered its worst percentage fall since August 2011, triggered by investor concern that an era of cheap money is drawing to a close in the face of renewed inflationary pressures.

The S&P 500 index ended the day 4.1 per cent lower at 2,648.94. All but two of the stocks in the index closed in the red. The Dow finished 4.6 per cent or 1,175 points lower — its biggest recorded fall in points.