The FTSE 100 was scheduled to fall again today after suffering the biggest one-day fall in nearly three months yesterday.
Inflation concerns returned to the boom yesterday, hitting the global market. FTSE fell 2.5% and the Dow Jones Industrial Average fell 1.4%.
Futures markets this morning suggested that FTSE would fall another 17 points at 6922 today, but that number fluctuated sharply hours before trading began.
Asian stock markets continued to crash this morning, but FTSE was yesterday’s biggest European plunge and could be the worst today.
However, traders don’t have to look back on similar bowel-damaging falls. The market plunged earlier this month, but gradually recovered in the next few days.
Stock prices have recovered so strongly since the depths of Covid’s darkness last year that it’s a volatile time for anyone wondering whether to put more cash into the stock market.
Investors are concerned about inflationary pressures as central banks begin to tighten ultra-loose monetary policy by raising interest rates and curtailing quantitative easing programs.
Such stories have a huge impact on stocks as they return investors to low-risk assets such as bonds and increase corporate borrowing costs.
Later today, US inflation data provides more clues as to the future direction of prices in the world’s largest economy.
The FTSE 100 will fall further after the global market routs.
Source link The FTSE 100 will fall further after the global market routs.