You are here: Home - Investing - Experienced Investor - News -

FTSE 100 falls below 5,000 mark despite action by global banks

0
Written by:
16/03/2020
Coronavirus is still rattling global markets despite a co-ordinated response to the epidemic from global banks across the world.

In the UK, the FTSE 100 fell by 7% in early trading taking the index below the 5,000 mark for the first time since 2011.

Other European markets also plummeted, while in Asia, markets closed sharply down.

Yesterday, the US Federal Reserve unexpectedly cut interest rates to practically zero and launched a new $700bn round of quantitative easing.

Other central banks, including the Bank of England, promised a level of support not seen since the peak of the global financial crisis in 2008.

However, the aggressive action did nothing to stem investor concerns.

Adrian Lowcock, head of personal investing at investment platform Willis Owen, said: “Markets remain rattled. Falls in Asia overnight have been followed by sharp sell-offs in the UK and across Europe today, with similar moves expected later in the US.

“Until we see an end in sight for the virus and the number of infections globally peak, markets are going to be extremely volatile, and it’s likely going to get worse before it gets better, so investors must brace themselves in the near term.”

Last week, the FTSE 100 suffered its worst day since 1987’s Black Monday, diving almost 11% and wiping £160bn off the value of the index.

Ayush Ansal, chief investment officer of investment firm Crimson Black Capital, said: “The fall of the FTSE 100 and other European exchanges on Monday’s open following the Fed’s action highlights the problem policymakers are facing.

“The shock to markets and economies from Covid-19 is so unique that monetary policy alone will not be effective enough.

“Monetary policy will have to work in tandem with radical fiscal measures to reduce the severe economic fall-out from Covid-19.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Flight cancelled or delayed? Your rights explained

With no sign of the problems in UK aviation easing over the peak summer period, many will worry whether holida...

Rail strikes: Your travel and refund rights

Thousands of railway workers will strike across three days this week, grinding much of the transport system to...

How your monthly bills could rise as the base rate reaches 1.25%

The Bank of England has raised the base rate to 1.25% as predicted – the fifth consecutive rise in just six ...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week