Britain’s blue-chip index has posted a hefty fall in today’s trading, extending the previous sessions’ losses, with investors around the world shunning equities amid inflation concerns. Financials and asset managers have been among today’s biggest FTSE 100 fallers.
FTSE 100 down in equities ‘bloodbath’
As of 12:14 GMT, the Footsie had lost 183.18 points to stand 2.50 percent lower at 7,151.80. Today’s retreat comes after on the other side of the Atlantic, the Dow Jones and S&P 500 benchmarks slumped 4.6 percent and 4.1 percent, respectively, while Asia tracked the US lower.
“The stock market open in the UK and Europe looks about as bad as it can get,” said Jasper Lawler, the head of research at online trading firm London Capital Group, as quoted by the Guardian. “The bloodbath on Wall Street, which was repeated in Asia has seen confidence evaporate in Europe.”
Christopher Peel, chief investment officer at Tavistock Wealth, however, told Reuters that there was “a sense of relief that we finally have a meaningful correction, it’s long overdue”.
“This type of price action, where you have a correction as severe as it has been, is a great reminder to investors, traders and regulators that it’s not all a one-way bet,” he added.
Asset managers and financials have the index’s biggest fallers today, with Scottish Mortgage Investment Trust (LON:SMT) currently leading other blue-chips lower, having given up 6.23 percent to 416.54p.
BP (LON:BP) meanwhile is outperforming the broader market, having added 1.16 percent to 476.45p, after reporting a rise in 2017 profits on the back of an upswing in the oil price.
The FTSE 100 was 2.35 percent down at 7,162.31 points as of 14:21 GMT on Tuesday, 06 February 2018.