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FTSE 100 loses another £35bn as coronavirus market rout continues – business live FTSE 100 hits one-year closing low, as Wall Street slides again – business live
(32 minutes later)
European markets have suffered a second day of heavy losses as new coronavirus cases are reportedEuropean markets have suffered a second day of heavy losses as new coronavirus cases are reported
Ouch! The Dow is now down 2% today, having lost 579 points to trade at 27,381.
American Express is the biggest faller, down over 4%, followed by chemicals firm Dow (3.8%), Visa (-3.6%) and Cisco (-3.3%).
Here’s the message that sent Wall Street sliding again today:
While stocks are slumping again, Wall Street’s fear index is rising.
The VIX index, which tracks volatility, has jumped by over 8% today:
Newsflash: US government bond prices have just hit a record high, as investors dash for safety.
This has driven the yield, or interest rate, on 10-year Treasury bills down to just 1.32%, its lowest ever level.
That indicates a lot of nervousness about US growth prospects in the face of the coronavirus threat. It also shows that investors who have been selling shares today are putting the money into safer assets (and US government bonds are as safe as it gets).
Back in New York, stocks are hitting fresh lows as Americans are warned to prepare for Covid-19.Back in New York, stocks are hitting fresh lows as Americans are warned to prepare for Covid-19.
The Dow Jones industrial average is now down 522.51 points, or 1.87%, in a fresh bout of anxious selling.The Dow Jones industrial average is now down 522.51 points, or 1.87%, in a fresh bout of anxious selling.
The slide comes as America’s Centers for Disease Control and Prevention (CDC) said people should prepare for COVID-19 to spread in their communities, following a jump in cases abroad.The slide comes as America’s Centers for Disease Control and Prevention (CDC) said people should prepare for COVID-19 to spread in their communities, following a jump in cases abroad.
Dr. Nancy Messonnier, director of the CDC’s National Center for Immunization and Respiratory Diseases, warned:Dr. Nancy Messonnier, director of the CDC’s National Center for Immunization and Respiratory Diseases, warned:
Sam Tombs of Pantheon Economics reckons the UK economy is less vulnerable to the coronavirus crisis than other countries, for several reasons including:Sam Tombs of Pantheon Economics reckons the UK economy is less vulnerable to the coronavirus crisis than other countries, for several reasons including:
Ample spare industrial capacity means manufacturing output can recover quickly after disruptions fade.Ample spare industrial capacity means manufacturing output can recover quickly after disruptions fade.
U.K. tourists’ spending abroad exceeds overseas tourists’ spending in Britain by 50%; less flying can lift GDP.U.K. tourists’ spending abroad exceeds overseas tourists’ spending in Britain by 50%; less flying can lift GDP.
We see no sign yet that U.K. consumers are altering their behaviour in surveys or online search data.We see no sign yet that U.K. consumers are altering their behaviour in surveys or online search data.
JP Morgan’s Jamie Dimon has, it seems, found a reason to be cheerful about coronavirus:JP Morgan’s Jamie Dimon has, it seems, found a reason to be cheerful about coronavirus:
The World Economic Forum would certainly be a good place for Covid-19 to spread -- as thousands of attendees cram into its congress centre (and the parties outside).The World Economic Forum would certainly be a good place for Covid-19 to spread -- as thousands of attendees cram into its congress centre (and the parties outside).
However.... WEF wrapped up a month ago, so attendees would surely have been struck down by now.However.... WEF wrapped up a month ago, so attendees would surely have been struck down by now.
The Financial Times have done a good piece about the fall in junk bond prices -- which is another sign that investors are very worried.The Financial Times have done a good piece about the fall in junk bond prices -- which is another sign that investors are very worried.
Here’s a flavour:Here’s a flavour:
Every European stock market has suffered heavy losses again today.Every European stock market has suffered heavy losses again today.
Switzerland was one of the worst hit, after it recorded its first coronavirus case today.Switzerland was one of the worst hit, after it recorded its first coronavirus case today.
Banks and utilities performed particularly badly, in a session in which every sector fell.Banks and utilities performed particularly badly, in a session in which every sector fell.
Here’s the closing prices:Here’s the closing prices:
FTSE 100: down 138 points, or 1.95%, at 7,017FTSE 100: down 138 points, or 1.95%, at 7,017
German DAX: down 244 points or 1.9% at 12,790German DAX: down 244 points or 1.9% at 12,790
French CAC: down 112 points or 1.9% at 5,679French CAC: down 112 points or 1.9% at 5,679
Italian FTSE MIB: down 336 points or 1.4% at 23,090Italian FTSE MIB: down 336 points or 1.4% at 23,090
Swiss SMI: down 234 points or 2.2% at 10,478Swiss SMI: down 234 points or 2.2% at 10,478
Spanish IBEX: down 232 points or 2.45% at 9,250Spanish IBEX: down 232 points or 2.45% at 9,250
I’ve just double-checked...and indeed, almost £35bn was wiped off the FTSE 100 today.I’ve just double-checked...and indeed, almost £35bn was wiped off the FTSE 100 today.
That means the index has shed £97bn this week already.That means the index has shed £97bn this week already.
Newsflash: Britain’s FTSE 100 index of top shares has ended the day at its lowest closing level in a year.Newsflash: Britain’s FTSE 100 index of top shares has ended the day at its lowest closing level in a year.
The Footsie has closed at 7017 points, down 138 points or 1.94% today. That’s on top of the 247 points shed on Monday.The Footsie has closed at 7017 points, down 138 points or 1.94% today. That’s on top of the 247 points shed on Monday.
This is the lowest closing point since February 2019, (although the FTSE 100 did briefly dip lower last October).This is the lowest closing point since February 2019, (although the FTSE 100 did briefly dip lower last October).
Nearly every share fell today -- here are the biggest fallers.Nearly every share fell today -- here are the biggest fallers.
By my maths, this wipes around £34bn off the index -- on top of the £62bn shed yesterday.By my maths, this wipes around £34bn off the index -- on top of the £62bn shed yesterday.
David Madden , analyst at CMC Markets, says coronavirus fears drove markets down:David Madden , analyst at CMC Markets, says coronavirus fears drove markets down:
How bad could coronavirus, and the market selloff, get?How bad could coronavirus, and the market selloff, get?
Well..... Simon Powell of investment bank Jefferies fears that the latest cases in South Korea, Italy and Iran point to the risk of a global pandemic.Well..... Simon Powell of investment bank Jefferies fears that the latest cases in South Korea, Italy and Iran point to the risk of a global pandemic.
Powell suspects that there are more cases in America than officially reported. And given movement of Chinese, Korean and Iranian nationals into the US, we could soon see an outbreak there that “significantly” rattles markets.Powell suspects that there are more cases in America than officially reported. And given movement of Chinese, Korean and Iranian nationals into the US, we could soon see an outbreak there that “significantly” rattles markets.
Powell writes that US hospitals could be “swamped with acute cases” - especially as it will be extremely hard to lockdown an American city.Powell writes that US hospitals could be “swamped with acute cases” - especially as it will be extremely hard to lockdown an American city.
Stocks are really on the slide in New York.Stocks are really on the slide in New York.
The Dow has lost another 1.3%, or 374 points, on top of the 1,000 shed on Monday.The Dow has lost another 1.3%, or 374 points, on top of the 1,000 shed on Monday.
Sentiment is shifting fast, in the face of more coronavirus infections.Sentiment is shifting fast, in the face of more coronavirus infections.
Nearly every share on the FTSE 100 is down today, as fears of a Covid-19 pandemic ripple through the City again.Nearly every share on the FTSE 100 is down today, as fears of a Covid-19 pandemic ripple through the City again.
This latest selloff comes as new coronavirus cases are reported in Switzerland, Austria and Croatia.....This latest selloff comes as new coronavirus cases are reported in Switzerland, Austria and Croatia.....
As things stand, the FTSE 100 index is on track to lose roughly another £30bn today, on top of the £62bn shed yesterday.As things stand, the FTSE 100 index is on track to lose roughly another £30bn today, on top of the £62bn shed yesterday.
Every sector is down, led by consumer cyclicals (-2%), telecoms (-2%), energy (-2%), utilities (-1.9%) and banks (-1.9%).Every sector is down, led by consumer cyclicals (-2%), telecoms (-2%), energy (-2%), utilities (-1.9%) and banks (-1.9%).
It’s turning into another rout!It’s turning into another rout!
Britain’s FTSE 100 index is now down another 130 points, or 1.7%, at 7030, as we enter the final hour of trading.Britain’s FTSE 100 index is now down another 130 points, or 1.7%, at 7030, as we enter the final hour of trading.
That’s still a four-month low on an intraday basis, but would be the lowest closing level in a year.That’s still a four-month low on an intraday basis, but would be the lowest closing level in a year.
Cruise operator Carnival is now down 5.7%, on fears that tourism will be badly hurt by the coronavirus, followed by Meggitt (which cited the virus as a threat this morning).Cruise operator Carnival is now down 5.7%, on fears that tourism will be badly hurt by the coronavirus, followed by Meggitt (which cited the virus as a threat this morning).
Wall Street has fallen into the red too -- with the Dow down 168 points at 27,792. That early recovery is but a memory.....Wall Street has fallen into the red too -- with the Dow down 168 points at 27,792. That early recovery is but a memory.....