FTSE 100 sees £51.7bn wiped off its value in a single day due to fears of second lockdown
The FTSE 100 has seen £51.7bn wiped off its value in a single day – as markets react to the news of a potential second lockdown.
This week, tougher COVID-19 restrictions have been introduced – and due to the impact the virus has already had a wide range of sectors, many investors are sceptical of a positive upturn in fortunes.
London’s leading share index fell by 3.4%, or 203 points on Monday, as part of a global sell-off that also saw European and US stocks get hit by heavy selling pressure from all sectors.
The government made the announcement regarding new coronavirus-enforced measures and as a result, the pound fell against the value of the US Dollar and Euro. However, that has slowly recovered. With Brexit talks set to resume over the next fortnight, analysts are predicting a second fall in value.
The FTSE 100’s fall to 5804 points left it 23% down on the year to date figures. Monday’s fall in value was the biggest one-day slump since June.