LONDON - Stock markets around the world slumped Monday on growing worries over the prospect of fast-rising interest rates in the United States, dealers said.

Wall Street, which kicked off the global selloff on Friday, fell again on Monday.

But after shedding over one percent in the opening minutes of trading, the Dow Jones Industrial Average saw a partial recovery to trade a mere 0.5 percent lower approaching midday in New York.

Some analysts called on investors to keep calm in the face of the selling pressure. "The correction seen over the past week is hardly a reason to panic," said John Higgins, an analyst at Capital Economics.

 Europe stays low

But fresh Dow buying did little for European stock markets which closed the day more than a percent lower, although Frankfurt fared somewhat better.

Wall Street tumbled 2.5 percent on Friday after the release of a healthy January jobs report that showed the biggest increase in wages in nine years. That catapulted 10-year Treasury yields -- a key global interest rates indicator -- to fresh four-year highs.

American turmoil in turn triggered fresh losses in Asia earlier Monday, with traders fretting that a resurgent US economy will lead to rapid interest rate rises by the Federal Reserve.

The selling was fuelled also by profit-taking after a blistering January that saw several indexes strike record or multi-year highs, while energy firms were hit by a drop in oil prices.

Bull run at end?

"Stocks look like they are set for a correction of some sorts after huge losses over the last few sessions that has left many bulls worried that the bull run may have come to an end," said AxiTrader analyst James Hughes.

On Friday, New York's Dow closed down 666 points, with the S&P and Nasdaq also down sharply.

"Europe is catching the virus and is aggressively lower," said Hughes.

"The issue with this kind of fall is that it becomes a snowball effect, and after such astronomical gains since election day 2016 the falls can be equally as aggressive, but nobody could say that a correction has not been due."

A market correction is usually defined as a drop of more than 10 percent from recent highs. At the end of trading on Friday the Dow stood down 4.1 percent from a record high struck on January 26.

But Higgins at Capital Economics noted that the broad S&P index was still three percent higher than at the start of the year, even after losing four percent since January 26.

"Overall, we are not convinced that this is the start of a major correction in the stock market, as the fundamentals remain healthy for now," he said.

Wall Street has enjoyed a record-breaking run ever since Trump's 2016 election on hopes of a beneficial impact from the US president's pro-business tax-cutting policies.

Bitcoin another bit lower

But many equity markets were already in negative territory last week owing to rising bond yields and profit-taking. In Asia on Monday, Tokyo dived 2.6 percent, while Hong Kong sank more than one percent and Sydney closed down 1.6 percent. However, Shanghai recovered to end 0.7 percent higher.

The rise in bond yields, fuelled by a surging US economy and corporate earnings, has spooked traders, worried that the Fed will raise borrowing costs more than the three times initially expected this year. "It's an equity storm, created by the pressure from bonds," noted ETX Capital analyst Neil Wilson. "Equity nervousness seems to be about repricing for higher yields and tighter Fed policy."

Bitcoin, meanwhile, also had a bad Monday, falling to around $7,380 and capping the "worst week for bitcoin since January 2015" according to analysts at Mirabaud Securities Geneve as more news curbed confidence in the cryptocurrency.

China plans to stamp out all remaining cryptocurrency trading in the country by blocking access to overseas-based websites and removing related applications from app stores.

And Lloyds Banking Group on Monday joined major US banks in banning purchases of bitcoin and other cryptocurrencies via credit card.