The FTSE 100 experienced its biggest one-day fall for nine months yesterday as fears grew that the world economy is heading back into recession.
The 2.34 per cent drop on the index of Britain’s most valuable firms came as the Dow Jones Industrial Average flirted with its worst losing run since 1978.
The FTSE 100 fell 133.88 points to 5584.51, its biggest drop in a single day since Nov 16, wiping £35 billion off the value of the market.
In four successive days of trading falls, investors have lost £65 billion, with the FTSE 100 at its lowest level since Nov 30 last year and down 7.1 per cent this year. Any investor who had put their full ISA allowance of £10,680 in a FTSE 100 tracker fund at the start of the tax year would be nursing losses of £220.
Fears that the US economy was heading into recession and the ongoing crisis in the eurozone have erased $2 trillion of value from world stock markets in the past week.
Amid increasing nervousness about the chances of a fresh recession and its impact on consumers, the price of gold rose again.
it is bit scary
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