Going into the last few minutes of trading, the FTSE 100 is down 144.6 points (3.5%) on another dismal day for the world markets.
Despite yesterday’s late recovery, the UK’s leading index has halted a three-day rise after investors failed to react positively to the BoE’s base-rate cut. Markets worldwide have shown losses, and the US markets seem poised to finish a fourth week in decline, opening down this morning amidst rising redundancy rates and low payroll figures. The price of oil also plummeted, with Brent crude slipping to a four-year low. With the US economy bleeding jobs, it comes as no shock that the Dow has dropped 212.7 points or 2.5%, and the S&P 500 lost 23.2 points or 2.7% by 4pm (London time). So far, JP Morgan is among the big losers – further evidence of investors’ deteriorating faith in financial institutions in spite of financial bail-out packages.
This is an uninspiring close to an eventful week marked by yet more economic decline. The continuing flow of negative news from around the globe has sapped positive sentiment from the markets. With the future looking decidedly uncertain for many businesses, leading indices can expect share prices to remain volatile for some time to come.
Click here to go to IG Index
Tim Hughes is Head of Sales Trading at IG Index. We do not endorse the information and analysis available in this comment and it is provided purely for information purposes only and is delivered as a personal view by the writer. Under no circumstances is the information in this comment to be used or considered as an offer to sell, or a solicitation of any offer to buy. While all reasonable care has been taken to ensure that the information contained herein is not untrue or misleading at the time of publication, we make no representation as to its accuracy or completeness and it should not be relied upon as such. The investments referred to herein may not be suitable investments for all persons accessing this page. You should carefully consider whether all or any of these are suitable investments for you and if in any doubt consult an independent adviser. We accept no liability whatsoever for any direct or consequential loss arising from use of the information on this web page. Please see our Terms and Conditions.