FTSE in bear territory as it plummets below 5800 for the first time in 3 years

Last night’s close marked a milestone low for London’s FTSE 100 index as trading concluded below the 5800 mark for the first time in three years. Beginning the year at a very low point, with over £40 billion having been wiped off the prices of listed stocks on London’s benchmark exchange, the downward direction continued […]

Lydia Solinski now Bank Liquidity Manager at 360 Trading Networks

Last night’s close marked a milestone low for London’s FTSE 100 index as trading concluded below the 5800 mark for the first time in three years.

Beginning the year at a very low point, with over £40 billion having been wiped off the prices of listed stocks on London’s benchmark exchange, the downward direction continued into the second and now the third week, with last week having represented a fall by £89 billion in combined stock value compared to the end of last year.

At that point, FinanceFeeds provided an insight into certain factors that could be the cause of such a dramatic drop in share prices, and now the bearish trend has continued even further.

Optimism is now quite low, and commentators are making their opinions known.

“We are just two weeks into 2016 and it may already feel like the year of the bear” – David Kelly, Chief Global Strategist at JP Morgan.

Last week, Royal Bank of Scotland publicly told investors to “sell everything” and most certainly this reflects a continued downturn as shares across Europe and commodities continued to plunge.

The Italian stock market closed with a 2.7% downturn, and there has been a huge sell-off as the price of oil dropped to as low as $27.67 before making a very slight recovery.

Crude oil has fallen in value by some 75% since summer 2014 when it was trading at an (albeit inflated) $115 per barrel, however the downward spiral is now so great that many analysts across the entire industry predict that it could go as low as $10 per barrel.

Now, with the lifting of certain sanctions on Iran, it could be that Iran will flood the market with its own oil, further decreasing the price of crude as supply increases.

Retail prices for regular gasoline could fall to 86p at British fuel stations if crude oil drops to $10 per barrel, which is almost half the price that it was 10 years ago.

Yesterday, shares in London’s leading companies spent the day under the cloud of negative sentiment and it has even got to the stage at which bets are being placed at bookmaker Ladbrokes with odds of 10/11 that oil will dip below $25 per barrel following the lifting of sanctions against Iran.

With trading concluding at 5,800 last night, a far cry from April 2014’s all time high of 7,103, and potential currency and stock volatility looming due to the proposed EU referendum, it most certainly appears that analysts that predicted the US to be the stable benchmark territory from which to trade against other venues or currencies were indeed quite correct.

 

Read this next

Institutional FX

Euronext’s FX volume takes yet another step back in July

Pan-European exchange, Euronext has reported a 7.6 percent drop in the average daily volume on its spot foreign exchange market. The ADV figure stood at $21.4 billion in July 2022, which is down from June’s $23.1 billion.

Executive Moves

IG Group strengthens institutional sales with appointment of Glen Hastings

IG Group, Europe’s largest online trading platform, has onboarded Glen Hastings to the role of its institutional sales manager. He joins the FCA-regulated broker with immediate effect, based out of its offices in London.

Digital Assets

Voyager customers can withdraw up to $100K in cash via ACH transfer

Following approval of the bankruptcy judge, cryptocurrency brokerage firm Voyager plans to return $270 million in customer cash. The amount represents a small portion of investors’ crypto holding that have been locked up since the company filed for bankruptcy in April.

Retail FX

Britain’s lifeboat system to conclude LCG compensation scheme

Britain’s Financial Services Compensation Scheme (FSCS) said today it’s preparing to close the compensation scheme of the collapsed mini-bond provider, London Capital & Finance.

Uncategorized

Robinhood parts ways with its first CPO Aparna Chennapragada

In what apparently part of the restructuring it announced last month, Robinhood is parting ways with its Chief Product Officer Aparna Chennapragada. However, she’ll remain employed in an advisory role to the CEO through January 2023.

Digital Assets

Crypto.com expands regulatory footprint with new licence in South Korea

Crypto.com has acquired payment service provider ‘PnLink Co., Ltd.’ and virtual asset service provider ‘OK-BIT Co., Ltd.’ The move effectively provides a regulatory stamp for the company’s digital assets and cryptocurrencies business in South Korea.

Metaverse Gaming NFT

Why NFT Technology Could be the Much Needed Solution to Crypto Inheritance 

The digital asset market may have started with Bitcoin’s humble beginning but its fortunes have changed over the past decade.

Industry News

Kohle Capital Markets expands CFDs lineup to 200+ stocks

Kohle Capital Markets (KCM), the leading international provider of online trading, has once again expanded its contracts-for-difference (CFDs) offering, this time with the addition of new products on its trading platform.

Industry News

Kohle Capital Markets continues CSR initiatives with donation of art piece to Lions Club International

Global brokerage firm Kohle Capital Markets (KCM) is taking its corporate social responsibility very seriously and continues to navigate the challenging period brought forth by the pandemic and Russia-Ukraine war.

<