Stock market plunge an 'over-reaction': IMF's Lagarde

October 18, 2014 | 09:31

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IMF chief Christine Lagarde said on Friday (Oct 17) the plunge in global stock exchanges this week was due to a market "over-reaction".

International Monetary Fund Managing Director Christine Lagarde in Washington, DC, October 10, 2014. (AFP/Mandel Ngan)

PARIS: International Monetary Fund (IMF) chief Christine Lagarde said on Friday (Oct 17) the plunge in global stock exchanges this week was due to a market "over-reaction".

"Generally the IMF doesn't comment on short-term market variations (but) we can't help ourselves from thinking we're in the presence of a correction and maybe at this stage an over-reaction," she said.

Markets have plunged this week on fears that the euro crisis could be resurfacing, the Ebola virus and geopolitical worries.

European markets bounced back sharply on Friday, however, with Frankfurt up more than three per cent, the French market up nearly three per cent and London higher by just shy of two per cent.

AFP

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