FTSE slump continues as index spirals towards 6,000
A sell-off sparked a month ago by Ben Bernanke, chairman of the Federal Reserve, has taken a number of indices into bear market territory, and this morning it continued to impact the UK and other markets.
By 10am, the FTSE 100 was off 0.6% or 40 points at 6,076, having declined steadily since 22 May when Bernanke made his announcement regarding a curtailing of stimulus later this year.
Since the May peak of 6,840 points, the index has shed over 11%.
European indices were also in the red this morning, with the French CAC 40 and German DAX down 1.1% and 1.2% respectively.
Overnight, Asian markets had already dropped amid further fears about a slowdown in China which appears to be getting worse.
Goldman Sachs cut its growth forecast for the country, prompting a big fall for Chinese stocks, with Shanghai’s Shenzhen CSI 300 index off 6.3% to close firmly in bear market territory having fallen over 20% since a peak of 2,644 in late May.
The Hong Kong Hang Seng index also fell 2.2%, while other Asian indices were weaker, with the Nikkei 225 down 1.3%.federa