Europe’s inventory market fall triggered by Citi dealer error

Citigroup mentioned it had recognized the reason for the flash crash and corrected the error “inside minutes.”

Jim Dyson | Getty Photos Information | Getty Photos

A so-called “flash crash” in European markets on Monday prompted a number of indexes to tumble sharply, sparking alarm amongst buyers on a day when buying and selling was skinny as a result of public holidays all over the world.

Buying and selling was briefly halted in a number of markets simply earlier than 8 a.m. London time on Monday after some European shares abruptly turned decrease.

Nordic shares had been hit the toughest, with Sweden’s Stockholm OMX 30 share index falling by as a lot as 8% at one level, earlier than paring most of these losses to shut the session down 1.9%.

Different European markets additionally plummeted for a short interval.

U.S. banking big Citigroup on Monday took duty for the flash crash.

“On Monday, one in every of our merchants made an error when inputting a transaction. Inside minutes, we recognized the error and corrected it,” a spokesperson for Citi informed CNBC.

European markets closed Monday’s session sharply decrease as buyers reacted to the flash crash and digested weak financial knowledge out of China and Germany.

The pan-European Stoxx 600 traded marginally decrease on Tuesday afternoon as market members monitored key rate of interest choices worldwide.

What’s a flash crash?