Sun, 17th Jun 2018
The FTSE 100 slipped by 1.26 percent, as political turmoil hit Europe. The UK’s leading index fell by more than 97 points, and the FTSE 250 fell by 363 points, as investor sentiment became poor across the board.
The drama in Europe has brought back fears over the stability of the euro-zone, and awareness of default risk - something that had been dormant for several years.
As may have been expected, after the markets got nervous, commodity stocks gained, and one of the few strong performers in the FTSE 100 was Fresnillo, who gained 3.12 percent.
One of the poorest performers of the day was NMC Health, who shed 164p, while Severn Trent fell by 4.1 percent, and Scottish & Southern Energy shed 3.5 percent.
The FTSE was not the only market to struggle. The Dow Jones and S&P 500 both got off to poor starts, and there was a European-wide sell off, as investors became concerned that the coming Italian election may turn into a referendum regarding membership of the Euro. The consensus seems to be that Cottarelli will struggle to gather support to pass a budget, and that this could lead to a snap election at a time when there are strong anti-establishment parties that could gain a large representation in the parliament. These fears are proving strong enough that even a weak Euro and a weak pound are proving to be insufficient to hold up the strength of the main European and London indicies.