Market Report: FTSE 100 faces the most volatile start to a year in over two decades

No wonder traders must have nerves of steel these days – rather than investments in steel – as new research shows the FTSE 100 has faced the most volatile start to a year in over two decades. That was the discovery by investment and stockbroker firm AJ Bell, which revealed the blue-chip index has risen or fallen by more than 1 per cent from open to close on 25 occasions in just 37 days of trading since the start of the year, a record dating back to at least 1995. The swings are even more volatile than when the dotcom bubble burst in 2000 and the financial crisis of 2008. And Tuesday, was typical of the volatility, with the FTSE 100 closing down 75.42 points, 1.25 per cent, at 5,962.31 – once again falling below the psychologically important 6,000 point mark.

And again mining giants were the main culprits, registering single digit drops. Anglo American closed down 30.7p, or 6.3 per cent, at 453.1p; Antofagasta dropped 20.9p, or 4 per cent, to 496.6p and Rio Tinto was off 63p, or 3.1 per cent, at 1988p.

Elsewhere, sub-prime lender Provident Financial saw its profits jump 25 per cent to £293m helped by its Vanquis division, where profits rose 22.8 per cent. Bosses said credit standards remain unchanged but revenues were up because the non-standard credit card market remains “under-served”. Shares were up 68p, or 2.1 per cent, to 3267p, thanks in part to a 23 per cent dividend hike.

John Wood Group, the oilfield-services provider, which has felt the impact of lower oil prices, watched its profits drop 70 per cent to £98m. But the shares shot up 29p, or 5 per cent, to 612.5p thanks to a 10 per cent dividend rise, as aggressive cost cutting helped save money, including slashing around 20 per cent of the workforce — 8,000 jobs — to save £105m.

Finally, engineering giant Amec Foster Wheeler, revealed that it had won a $183m (£130m) contract with the US Army, supporting the country’s missile-defence system based in Poland. However, shareholders remained cautious, due to the company’s exposure to oil and gas, with shares down 6.1p, or 1.7 per cent, at 359.8p.