Tuesday, 22 September 2015

Analysts Warn of "Another Crash" as FTSE Hits Lowest Level Since Black Monday

THE TELEGRAPH: Almost £44bn has been wiped off the value of Britain's biggest companies as copper prices hit a two-week low.

Almost £44bn was wiped off Britain’s leading companies in a torrid trading session which saw the mining heavy FTSE sink to its lowest level since "Black Monday", as analysts warned another “crash” in global markets is possible.

In its biggest fall since September 1, the blue chip index slumped 172.87 points, or 2.83pc, to 5,935.84, just 37 points shy of where it closed on August 24, as the rout in commodity prices continued to drag mining stocks lower.

Despite racing to an all time record high of 7,104 in April, the FTSE 100 has steadily lost ground, and is now down 16.4pc, rocked by concerns over an economic slowdown in China.

Joshua Mahony, of IG, warned: “There is a distinct possibility of yet another crash in financial markets.”

“The steroids of monetary policy may have brought us to heights previously unseen in global markets, yet as the Fed and Bank of England begin wean us off this artificial high, we are coming to find ourselves perilously exposed to another major selloff.” Read on and comment » | Tara Cunningham, Business Reporter | Tuesday, September 22, 2015