The FTSE 100 suffered a huge fall on Friday, capping a crappy week for the index and global stocks in general.
The stock market in London just closed down 2.54%, or off 161.46 points at 6206.43. Let’s put that drop in context:
- The FTSE 100 is now at an 8 month low;
- The index has fallen 5.26% since Monday, its worst weekly performance since December;
- The FTSE 100 has now fallen for 9 straight sessions, its worst performance since 2011.
So, it’s bad news all round.
Pretty much every stock on the index was down, as the fall was driven by global growth concerns rather than a sector of company specific rout.
The big shadow hanging over markets is China. Stock markets are once again tumbling in Shanghai and, most worrying of all, the latest measure of manufacturing activity in China was at a 6 year low.
Fears that China’s economic growth is rapidly slowing have hit Asian markets, which all closed down Friday. US stocks are also taking a hit, with the S&P 500 dropping below 2,000 for the first time since February.
It’s no surprise then that the FTSE 100 is following the global trend and pretty much nose diving.
There’s also another big worry, as Tony Cross, market analyst at Trustnet Direct, points out:
Although a lot of the downside pressures we’re seeing right now are being driven by concerns over the health of the Chinese economy, there are also renewed fears as to what Tsipras’ resignation as PM in Greece means for the Eurozone. Having been back to creditors for a third bailout, talk at the fringes is once again focusing on the possibility of a Grexit.
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