Around £64 billion was wiped off the value of the largest companies in Britain and renewed fears of the global economy slipping around the world.
During the exciting and dramatic day of negotiations in London, the FTSE 100 fell 246 points, or 4.67%, to close 5041. This is not the worst place on a daily decline in percentage terms since March 2009 and a sharp drop in points occurred in November 2008 in the wake of the collapse of Lehmann Brothers.
Markets in Europe shared the dark day with Germany as German Dax lost 4.9% and France's CAC fell 5.2%. Wall Street was also bathed in red, with the Dow Jones down 444 points, or 3.99% in early afternoon in New York.
The course was the start of trading, triggered by the U.S. Federal Reserve, warning that there was a "significant risk" for the U.S. economy. Financial markets are still suffering from the bad economic news from around the world on Thursday, but disappointing production data from China and alarming evidence that the private sector to fall, dragged the region into recession.
Giles Watts, director of Capital City Index, said that the cellophane has been driven by "mass demonstration of a sharp slowdown in the world", making a recession more likely.
"All the negative news only resulted in a scenario where investors are wondering whether they really should be putting their money in stocks or risky defensive shelters.
A call from Christine Lagarde, director of global leaders to combine the IMF to restore confidence in the city.
Each title has suffered a decline in the FTSE 100, with mining companies such as Vedanta, Antofagasta and Kazakhmys all suffering double digit falls. Bank shares were also in retreat across Europe, amid calls for financial firms to strengthen their balance sheets with fresh capital to cope with the impending loss of the debt crisis in the euro area.
"Gloomy outlook last night by market sentiment from the Federal Reserve has seen the right of the first shots, while the disappointing figures from China's PMI has done little to lighten the mood, especially in resources," said Ben Critchley IG Index.
Louise Cooper, an analyst at BGC Partners market, said traders were very fearful of the global economic outlook. Investors are speaking of volatility in the markets becoming the “new normal. The future is so uncertain – the world could look significantly different in a month’s time. Greece could have defaulted, we could be in the middle of a banking crisis – a bank could have even gone bust.”
During the exciting and dramatic day of negotiations in London, the FTSE 100 fell 246 points, or 4.67%, to close 5041. This is not the worst place on a daily decline in percentage terms since March 2009 and a sharp drop in points occurred in November 2008 in the wake of the collapse of Lehmann Brothers.
Markets in Europe shared the dark day with Germany as German Dax lost 4.9% and France's CAC fell 5.2%. Wall Street was also bathed in red, with the Dow Jones down 444 points, or 3.99% in early afternoon in New York.
The course was the start of trading, triggered by the U.S. Federal Reserve, warning that there was a "significant risk" for the U.S. economy. Financial markets are still suffering from the bad economic news from around the world on Thursday, but disappointing production data from China and alarming evidence that the private sector to fall, dragged the region into recession.
Giles Watts, director of Capital City Index, said that the cellophane has been driven by "mass demonstration of a sharp slowdown in the world", making a recession more likely.
"All the negative news only resulted in a scenario where investors are wondering whether they really should be putting their money in stocks or risky defensive shelters.
A call from Christine Lagarde, director of global leaders to combine the IMF to restore confidence in the city.
Each title has suffered a decline in the FTSE 100, with mining companies such as Vedanta, Antofagasta and Kazakhmys all suffering double digit falls. Bank shares were also in retreat across Europe, amid calls for financial firms to strengthen their balance sheets with fresh capital to cope with the impending loss of the debt crisis in the euro area.
"Gloomy outlook last night by market sentiment from the Federal Reserve has seen the right of the first shots, while the disappointing figures from China's PMI has done little to lighten the mood, especially in resources," said Ben Critchley IG Index.
Louise Cooper, an analyst at BGC Partners market, said traders were very fearful of the global economic outlook. Investors are speaking of volatility in the markets becoming the “new normal. The future is so uncertain – the world could look significantly different in a month’s time. Greece could have defaulted, we could be in the middle of a banking crisis – a bank could have even gone bust.”
So what, the government is able to print out that kind of cash in an hour. Let's use our heads here guys and gals, the economy is doing okay.
ReplyDeleteSure it could be a bit better, me and my family are getting by using the tools this wonderful government gave us. Let me tell ya we have two awesome boys who work for our cigarette money. We raised these fellers to be honorable. Oh they might sit watching silly Nick cartoons all day without talking to us, but why should kids be speaking to adults? Haha, right!?
I'm not sure what part of the economy is hurting, I see jobs everywhere for people. There are dry cleaners that will hire, fast foods, and farms. The farms might not be short on brownly burnt invaders though, rofl!
No but really, what's the problem? This is great day to be alive. Free money, infinite resources, no need to work hard, good government, world peace, no violence anywhere, neighborhoods having barbeques, kids are in no danger, health benefits everywhere, and a drug free nation.
Hell, all ya gotta do is swallow your pride and let debt pile up. Nobody is going to come take your house away, you can always ask rich people to loan you some bucks. There are plenty of wealthy men who will help you out if you knock on their doors in a rich looking neighborhood.
So many people walk around scared of their financial situation. Let me assure you dudes and dudettes there is plenty of money to go around, all ya gotta do is find the right person to give ya some.
This puts me in the mood to go to the mall.
2:38 you're kidding right?
ReplyDeleteIn the years between 2001 and 2005, with scarcely anyone in the West noticing, the Taliban started to come back. British and American diplomats based here often used to tear their hair out in private when they realised what was happening.
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