Inflation concerns wiped out £ 57 billion for FTSE companies and plunged the global equity market.
Billions of pounds wiped out the value of big UK companies yesterday as inflationary concerns plunged the global stock market.
On a cruel day for investors, the FTSE 100 Index fell 2.5% (175.69 points) to 6947.99 and the FTSE 250 fell 2.3% (530.05 points) to 22,167.14.
It’s been the worst day for Footsie since February. A total of around £ 57 billion has wiped out the value of the FTSE 100 and 250 companies.
Inflation Concerns: On a cruel day for investors, the FTSE 100 Index fell 2.5% (175.69 points) to 6947.99 and the FTSE 250 fell 2.3% (530.05 points) to 22,167.14.
Wall Street and European and Asian markets also fell, with tech stocks such as Tesla and Apple hit hardest.
Investors are afraid that inflation will begin to rise as the global economic recovery is supercharged by unprecedented levels of government spending.
The recovery in inflation could raise interest rates and delay, stop or reverse the money printing program that pushed the stock market to recent highs.
This can put a brake on the economy and hit a desire for a particular stock.
Nick Hayet, an analyst at Hargreaves Landsdown, said:
This is a fairly accurate description of many tech stocks, and the US market is increasingly dominated by US tech.
“Despite the jitter, investors should not abandon the technology sector. A temporary rise in inflation was inevitable.
What matters is whether inflationary pressures are sustained. There is still no compelling evidence that it is the case. “
Inflation concerns wipe out £ 57 billion from FTSE stocks
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