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FTSE 100 falls sharply as double-dip fears grow

The FTSE 100 closed down 4.5 per cent to 5092 today on the back of fears about a double dip recession and poor manufacturing data in America.

By midday in America the Dow Jones was down 3.55 per cent at 11,006 and the S&P 500 was down 3.72 per cent to 1149.

UK banks have been hit hard with Lloyds falling 9 per cent, Royal Bank of Scotland down 7 per cent and Barclays down 11 per cent.

Morgan Stanley announced today that it was cutting its growth expectations for Europe due to weaker than expected growth in the second quarter and a number of new factors likely slow growth in the second half of the year. It now expects GDP growth to average 0.5 per cent next year.

In a briefing note, the firm says: “Instead of the euro area growing at a stall-speed of around 1 per cent over the winter, we now expect stagnating economic activity. While not our base case, at this stage, we see a material risk of outright recession.”

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Comments

There are 6 comments at the moment, we would love to hear your opinion too.

  1. Well when the FTSE plummets its usually a good time to BUY then sit and wait until you are satisfied with your profit margin. As long as you dont get greedy you can do well out of stocks in a recession. GSK are probably a safe haven which goes up and down in chunks.

  2. It’s amazing how the newspapers report “£billions wiped off share values” when markets fall but say nothing when they bounce. Newspapers and the media, along with the comments from the guy with a face like a slapped arse (Mervyn King) are part of the reason for the volatility in the markets.

  3. There seems to be a systematic debasement of our currenies going on. Rather like the Romans did by reducing the amount of gold in their coins.

  4. Have always thought that the reporting is so bias and written by a bunch of pesimistic class A knobs!

  5. Oh I don’t know…Mervyn King might have a face like a slapped arse but he was unlucky against Phil Taylor the other night.

  6. The value of investments can fall as well as rise and you may get back less than originally invested.

    You should be prepared to invest your money for a minimum of 5 years.

    Where was this index 5 years ago? Or 20 years ago? Anyone remember 1987? Up and down she goes.

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