Britain’s blue-chip stock index, the FTSE100 officially entered a bear market on Wednesday afternoon, after a global market rout wiped more than 2.5% off its value, pushing the index into bearish territory.
Since April 2015, when the FTSE topped 7,000 points, and hit a post-financial crisis peak, the index has lost a little over 20% of its value, making it, by most definitions, a bear market.
On the day, the FTSE is being led lower by mining stocks, which, after a brief rally yesterday, have returned to their almost perpetual slump.
BHP Billiton — which just announced that it expects to take a $300 to $450 million hit on its yearly profits as a result of the commodity rout — is the worst performing stock, down around 6.2%. Closely following behind are Anglo American, Glencore, and Rio Tinto.
At 2:15 p.m. GMT (9:15 a.m. ET) only three FTSE stocks are in positive territory, with Randgold Resources, the miner specialising in precious metals leading the way, up by nearly 4%, as worried investors take flight to gold.
Here’s the FTSE’s performance over the past couple of years:
Incredibly, the FTSE100 isn’t the first major stock index to turn bearish on Wednesday. In Asian trade, the Nikkei 225 fell by 3.7%, and itself crossed the line into the bear market.