FTSE 100 drops as global sell off intensifies

by Jonathan Adams
FTSE 100 drops

The ftse recovered slightly from 6,981 and ended at 7,030

London’s FTSE 100 dropped deep in the red on Thursday, reaching as low as 7,000 during the day, as selling off intensified in most leading global indices, amid concerns over economic recovery as Covid cases rise.

The UK’s blue-chip index recovered slightly from the day’s lows of 6,981 and ended at 7,030, nearly 1.7 per cent or 120 points down. Mining and financial stocks dropped the most, as the Intermediate capital group declined more than 5 per cent.

Banking stocks like Lloyds, Barclays, and NatWest also remain weak amid the falling global yield, particularly in the US. Mining company Anglo American declined more than 4 per cent.

The FTSE 250 shed 1.4 per cent or 318 points as fear of rising Covid cases in the UK spooked investors.

Indices elsewhere in Europe were lower on Thursday, as concerns around economic recovery weigh, posting their worst session in two months. The pan-European STOXX 600 index shed 1.8 per cent, while Germany’s DAX lost 1.7 per cent and France’s CAC declined over 2 per cent.

In the US, stocks retreated from record highs, weighed by falling bond yields and worries of global economic recovery. The S&P 500 shed 0.9 per cent, with technology, financial and industrial companies taking the biggest hit. The Dow Jones Industrial Average dropped 0.7 per cent. The Nasdaq composite was down 0.7 per cent.

On Friday morning, the Asia-Pacific stocks also mirrored concerns of overnight closing in global peers, while the release of Chinese inflation data continues to worry investors, as indices trade deep in the red. Japan’s Nikkei is more than 500 points down at one time, while Shanghai Composite traded 0.7 per cent down.

Hong Kong’s Hang Seng showed some recovery after dipping heavily in the early morning trade and is managing to stay in the green with gains of nearly 0.6 per cent by midday.

This article is for information purposes only.
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