Selling has continued across the board today, with another 100 points wiped off the FTSE 100.
- FTSE hits three-year lows as financials drive markets lower
- WTI smashes through $30
- Gold enjoys its biggest one-day rally since 2011
Calm calculations have been few and far between, as markets have had one of their most volatile days since the financial crisis, with European shares having dropped by 17% from the start of the year. Equities in the UK and Europe have continued to struggle as a steady stream of disappointing corporate data has given the bulls little reason to move into action, regardless of how oversold they appear. Financial stocks on both sides of the channel have come under pressure as initially Deutsche Bank and then Societe Generale have undershot expectations. With Commerzbank due to post its figures tomorrow, things could still get worse before we find support. Rio Tinto is still paying out a dividend but it’s not the size that the markets were led to believe would be the case, and traders have subsequently punished the company’s share price. In an ironic twist from the first week of 2016, markets might be in for an easier ride next week once Chinese New Year celebrations have ended.
As demand remains weak and OPEC continues to pump into saturated markets, the inevitable collapse of oil prices has happened with WTI smashing through the $30 level, down 2.7% at its lows on the day. While almost everything around it has collapsed, gold has enjoyed its biggest one-day rise since 2011. As the outlook for interest rate rises has evaporated and panic has hit equity traders, the flight to the safe haven has intensified, with over-eager short positions simply fuel for a bigger rally.
- FTSE hits three-year lows as financials drive markets lower
- WTI smashes through $30
- Gold enjoys its biggest one-day rally since 2011
Calm calculations have been few and far between, as markets have had one of their most volatile days since the financial crisis, with European shares having dropped by 17% from the start of the year. Equities in the UK and Europe have continued to struggle as a steady stream of disappointing corporate data has given the bulls little reason to move into action, regardless of how oversold they appear. Financial stocks on both sides of the channel have come under pressure as initially Deutsche Bank and then Societe Generale have undershot expectations. With Commerzbank due to post its figures tomorrow, things could still get worse before we find support. Rio Tinto is still paying out a dividend but it’s not the size that the markets were led to believe would be the case, and traders have subsequently punished the company’s share price. In an ironic twist from the first week of 2016, markets might be in for an easier ride next week once Chinese New Year celebrations have ended.
As demand remains weak and OPEC continues to pump into saturated markets, the inevitable collapse of oil prices has happened with WTI smashing through the $30 level, down 2.7% at its lows on the day. While almost everything around it has collapsed, gold has enjoyed its biggest one-day rise since 2011. As the outlook for interest rate rises has evaporated and panic has hit equity traders, the flight to the safe haven has intensified, with over-eager short positions simply fuel for a bigger rally.
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