The week began poorly for markets around the world.
Stocks fell on Monday. The S&P 500 lost 2.9 percent to 1,099.23, falling to its lowest close since September last year, while the STOXX Europe 600 lost 1.1 percent. Asian stock markets had kicked off the decline on Monday, with the Hang Seng plunging 4.4 percent while the Nikkei 225 fell 1.8 percent.
Commodities also fell on Monday, with oil falling $1.59 to $77.61 a barrel, the lowest settlement since September last year.
The market tumble was primarily driven by Greece's admission that it will miss its fiscal deficit target this year, putting its rescue in jeopardy.
Weak global manufacturing data also did not help. The JPMorgan Global Manufacturing PMI fell in September to 49.9 from 50.2 in August. It is the first time since June 2009 that the index has fallen below the 50 mark. Markit's eurozone manufacturing PMI fell to a final reading of 48.5 in September from 49.0 in August.
Manufacturing performed better elsewhere in the world though.
In the US, the Institute for Supply Management’s manufacturing index climbed to 51.6 last month from 50.6 in August. Other data from the US on Monday also came in positive, with September vehicle sales and August construction spending both rising.
The UK also saw its manufacturing PMI rise to 51.1 in September from 49.4 in August.
And at the end of last week, China reported that the manufacturing PMI compiled by the Federation of Logistics and Purchasing rose to 51.2 in September from 50.9 in August, somewhat contradicting HSBC's manufacturing PMI which had stayed unchanged at 49.9.
Yet another positive on Monday came from Japan. The Tankan survey showed that the index of sentiment at large manufacturers rose to 2 in September from minus 9 in June.
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