Asian and European stock markets fell sharply Friday following a global computer system breakdown, with mood particularly hampered by US election uncertainties and Chinese economic concerns.
The London Stock Exchange saw a delayed start to trading due to the malfunction, which also impacted airports, airlines, trains, banks, shops, and even doctors’ surgeries.
“Risk aversion is taking hold yet again, with news that… banks, airports, train companies, TV stations including Sky News, stock exchanges including the LSE, Microsoft’s cloud services and cyber security services have all been hit by major online outages,” according to Kathleen Brooks, research director at XTB.
Aviation officials in the United States briefly grounded all planes, while airlines around the world canceled or delayed flights after Microsoft Windows-based systems crashed.
Microsoft said the problem began around 1900 GMT on Thursday and affected customers of its Azure cloud platform, which runs cybersecurity software, CrowdStrike Falcon.
The IT titan stated that it was taking “mitigation actions” in response to service difficulties.
“The world grinding to a halt because of a global IT meltdown shows the dark side of technology and that relying on computers does not always make life easier,” remarked Dan Coatsworth, investment analyst at stockbroker AJ Bell.
Prior to the revelation, investors were already concerned after a report suggested the White House was planning a crackdown on companies that supply chip technology to China.
They were particularly concerned when Donald Trump called on Taiwan to pay Washington for assistance in defending itself against China. Markets have been rallying in recent days as Federal Reserve officials have indicated that they are ready to begin lowering interest rates.
