Global gloom drags FTSE 100 down
A worldwide share plunge saw the FTSE 100 Index fall more than 100 points today as a run of pessimism on the markets pulled leading stocks further down from near-record heights seen just a few weeks ago.
The index of London's leading shares dipped below 6300 points as nervousness over the global economy prompted traders to cash in strong gains seen in recent months.
Analysts have observed that sell-offs in recent days are being spooked by the merest hint of negativity from the world's policymakers.
Just three weeks ago, the FTSE 100 soared to more than 6800 points, nearing the 6930.2 high seen during the dotcom boom in 1999. But it was soon being pointed out that the level of buoyancy was overdone given that, despite some optimism, economic conditions remain subdued.
The market looked due for a "correction" and began to fall, chiefly over fears that the US Federal Reserve's quantitative easing programme, seen as a stabilising crutch for the economy, would soon start to taper off.
It appeared to have levelled out last Friday after positive jobs data from the US. The "Goldilocks" reading suggested modest improvements in the outlook in America but not enough that the Fed would start to withdraw its massive stimulus.
The FTSE was flat yesterday and today traders around the world reacted badly to the latest update from the Bank of Japan, which had sent Toyo's Nikkei index down by 1 per cent overnight.
A statement issued by the Bank of Japan announced no major policy changes but reiterated its expectation for a moderate recovery in the coming months - at a time when analysts had been hoping policymakers would do more.
This afternoon, the FTSE 100 was down 1.6 per cent, or 105.1 points, at 6295.4. Germany's Dax and France's Cac 40 also fell close to 2 per cent.
Joshua Mahony, research analyst at Alpari, said: "Given the size and scope of this reaction, it is clear that investors have changed tack from one in which the default reaction is to buy to one in which every market event is analysed from a more sceptical point of view."
- 1 I was raped by another man. And now the Government wants to take away the one thing that saved my life
- 2 Preston fan who appeared to snatch Jermaine Beckford's shirt from eight-year-old boy identified and says: 'the truth will come out'
- 3 Priest warns pupils the 'Charlie Charlie Challenge' is 'demonic activity'
- 4 Iran launches anti-Isis cartoon competition 'to expose true nature of Islamic State'
- 5 US warned by Chinese media to stop meddling or 'war will be inevitable'
Australian man punched in the face for defending Muslim women from abuse on train
Priest warns pupils the 'Charlie Charlie Challenge' is 'demonic activity'
Iran launches anti-Isis cartoon competition 'to expose true nature of Islamic State'
Woman accidentally shoots herself in the head while posing for a selfie
US warned by Chinese media to stop meddling or 'war will be inevitable'
As a white man, I'm surprised more women aren't tweeting the hashtag #KillAllWhiteMen
EU referendum: David Cameron's rules are a 'democratic disgrace', says French-born Scottish politician set to be denied a vote
The day that Britain resigned as a global power
SNP fury as HS2 finds 'no business case' for taking fast train service to Scotland
A nation of inequality: How the UK is failing to feed its most vulnerable people
EU referendum: David Cameron to deny EU migrants and under-18s the chance to vote
iJobs Money & Business
£20000 - £25000 per annum + competitive: SThree: Did you know? SThree is a mul...
£55 - 65k (DOE): Guru Careers: A unique opportunity for a permanent C# Develop...
£16 - 20k: Guru Careers: A Graduate Editor / Editorial Assistant is needed to ...
£40-50K: Guru Careers: We are seeking an experienced Software / C# Developer w...