FTSE 100 heading for worst week in three years
THE FTSE 100 is braced for its worst week in more than three years following a mass investor sell-off in the wake of mounting global uncertainty.
The blue-chip index, which edged up 0.3 per cent this morning, has shed roughly 4.7 per cent in value over the last week.
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Brexit turmoil and wider geopolitical fears have sparked market uncertainty in the last week, wiping tens of billions off the London market in a matter of days.
US and Asian stocks have also been knocked amid news of a US-EU trade war and gloomy manufacturing figures for the last quarter.
“Stock markets have been very jittery this year with big rallies and then sudden pullbacks. The economic outlook would suggest volatility is only going to increase on the markets,” said Russ mould, investment director at AJ Bell.
He added: “The UK’s economic prospects look particularly fragile judging by the latest set of data on services, construction and manufacturing. A reduction in workforce numbers looks possible in the coming months, possibly companies not replacing leavers. However, if life gets worse one could imagine actual job cuts would be next on the agenda.”
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Markets tumbled yesterday as weak European services data added to concerns that the world economy is slowing down.