Economic growth fears have cast a black cloud over global markets, leading to some hefty share price declines across Europe on Wednesday. The FTSE 100 fell 0.8% to 7,090 while the major markets in mainland Europe suffered declines greater than 1%, says Russ Mould, investment director at AJ Bell.
“Only five stocks on the FTSE 100 were in positive territory, led by Smiths Group which has received a better offer for its medical arm. Healthcare, industrials, real estate and financials led the FTSE lower.
“Investors on the whole have enjoyed a fairly decent run this year, but now attention is turning from the post-lockdown spending splurge to how corporate earnings might fare next year.
“There is a sense that some of the market forecasts have been too optimistic and so there could be some share price disappointment unless we see GDP figures pick up and the Covid Delta variant stops causing so much trouble.”