Global equity markets are back in the red: The FTSE 100 index falls below 6,000 again as fears of the second wave unsettle investors and large British companies disclose the cost of viruses
- FTSE 100 closes 141.47 points at 5989.99, a decrease of more than 2 percent
- For the first time below 6,000 since mid-May when stocks recovered from the Covid crash
- London stocks hit by second wave fears and sharp losses for UK blue chips
- The French and German markets also fell by 2 and 3 percent, respectively
- US stock market hit by poor economic data, with leading indices down 1 percent
Stock markets around the world declined sharply today as investor fears grew that many countries risk a second lock if the corona virus flares up again.
In London, the FTSE 100 index fell below 6,000 for the first time since mid-May, when British stocks were on an uptrend after the Covid crash in March. It closed 141.47 points at 5989.99, a decrease of more than 2 percent
Shares were sold across Europe, with the French Cac-40 falling 2 percent and the German DAX falling 3 percent.
Grim reading: dealers all over the world pressed the sell button today for fear of the second wave
Downtrend: The footsie was hit by a triple whirlwind of second wave fears, heavy losses for British blue chips and some disappointing US economic data
Despite some optimism in the US markets, European markets were already in the red this morning after the Federal Reserve promised more support for the weak economy.
But an overwhelming economic update by the U.S. authorities has left Wall Street in the red this afternoon.
Data showed that the U.S. economy shrank to a staggering 33 percent a year in April-June's quarter – by far the worst quarterly slump ever – when coronavirus closed companies, made tens of millions of people unemployed, and unemployment rose to 14.7 percent .
And new unemployment claims in the United States have risen for the second week in a row after falling for 15 consecutive weeks as cases of coronavirus spikes delay plans to reopen or cause some states to step back.
The Department of Labor announced Thursday that 1.43 million Americans applied for unemployment during the week ending July 25, an increase of 12,000 from the previous week.
Sliding back: The FTSE 100 index fell below the psychologically important 6,000 mark for the first time since mid-May
This brought Wall Street dealers to the "sell button," and although the Nasdaq was back in the late afternoon, the S&P 500 was still down 0.5 percent and the Dow Jones industry average down 1 percent.
Concerns about the economic impact of a second wave have been heightened in London by a series of disappointing results from leading companies this week.
The oil giant Royal Dutch Shell posted an enormous loss of £ 14 billion due to falling oil prices and sales during the pandemic.
As a result, the heavyweight of the FTSE 100 also posted a record $ 16.8 billion for the value of its assets, and its 6 percent drop in price weighed heavily on the blue chip index.
Meanwhile, Lloyds Banking Group reported a £ 602 million pre-tax shock loss in the first half of the year, warning investors that the impact of the pandemic was "more profound" and "much larger" than expected.
This followed similarly gloomy numbers from Barclays and Santander yesterday, and the widespread Lloyds shares fell a whopping 7.8 percent to 26.15 pence.
Connor Campbell, financial analyst at Spreadex, said things were "really bad … when the US stalked into the session with an ugly GDP value".
"Although it wasn't exactly a surprise," he added, "and better than the consensus forecast, there's no way to welcome the news of a 32.9 percent decline in the second quarter, at the annual rate." diving into the red with a cliff.
& # 39; This number – the worst since the 1940s – caused the Dow Jones to lose nearly 500 points and the index fell below 26,000 for the first time in three weeks. Keep in mind that U.S. GDP is after a worse than forecast 10.1 percent decline in the German economy, meaning that the markets were already in a bad mood. & # 39;