Home Business News Fears of a global financial crash as FTSE 100 plummets and Nikkei collapses
@Jamie Street via Unsplash

Fears of a global financial crash as FTSE 100 plummets and Nikkei collapses

5th Aug 24 9:52 am

In early morning trading the FTSE 100 has plunged and Japanโ€™s Nikkei has collapsed and economists are fearing a global financial crash and a recession in the US.

The Nikkei 225 index fell be almost 13% on Monday which is the worst since โ€œBlack Mondayโ€ in 1987, Bitcoin has plummeted, Tesla, Microsoft and Google are down and trillions of dollars was lost last week.

The blue-chip index in London was down 1.4%, which fell 193 points to 7,982, Bitcoin has also taken a hit and has fallen below ยฃ39,000.

Last week investors were concerned of the prospect of a US recession after the US jobs data started a global market sell-off, which wiped off trillions from global markets.

There are strong fears some of the largest companies could see share fall off a cliff when the New York Stock Exchange opens later on Monday.

Nvidia fell 8.8% and Apple was down by 6.6% on pre-market trading on Monday morning and when trading resumes the Nasdaq 100 could plummet by 3.6%.

South Koreaโ€™s Kopsi index fell by more than 9%, markets in Singapore, Thailand, the Philippines Indonesia dropped by 2% and 3%, whilst Taiwanโ€™s Taiex slid 8.4%.

Derren Nathan, head of equity research at Hargreaves Lansdown, said, โ€œThe FTSE 100 has opened down as the US sneeze risks becoming a cold.

โ€œExporters bore the brunt of the sell-off as contagion from last weekโ€™s poor employment and manufacturing data in the States put recessionary fears back on the table.

โ€œThe discussion around Septemberโ€™s rate decision at the Federal Reserve Bank has moved from if to how much, with the odds now moving in favour of a half point cut.โ€

Chris Beauchamp, chief market analyst at online trading platform IG, said: โ€œMarkets are in absolute turmoil this morning thanks to the Nikkei 225โ€™s biggest one-day drop since 1987, which has wiped out the indexโ€™s gains for the year.โ€

He added the FTSE and EU stock are on track for difficult day, saying, โ€œInvestors continue to flee tech stocks, and the Nasdaq 100 is expected to open down 1000 points lower from Fridayโ€™s close, a loss of over 5%.โ€

โ€œThis is a perfect demonstration of what happens when everyone tries to sell at once.

Such moves donโ€™t stop in a single day and we likely have a summer of volatility ahead of us, particularly as we await developments in the Middle East.โ€

Sky News reported, Robert Carnell, from financial services firm ING, said, “What we are looking at now is a situation where the market is viewing what’s going on in the US macro economy as ticking the recession box.”

Leave a Comment

You may also like

CLOSE AD

Sign up to our daily news alerts

[ms-form id=1]