August 20, 2022

Footsie heads for correction territory as markets take a battering from Ukraine conflict

The FTSE 100 briefly fell into correction territory yesterday as merchants continued to stress over the conflict in Ukraine.

Markets have taken a battering following Vladimir Putin’s determination to invade almost two weeks in the past, with fears of provide shortages and worsening inflation operating rampant.

Amid the turmoil, the FTSE 100 ended Monday’s session down 0.4 per cent, or 27.7 factors, at 6959 after a risky day which noticed it briefly plunge 2.7 per cent earlier than recovering most of its losses.

Stoop: Markets have taken a battering following Vladimir Putin’s determination to invade Ukraine almost two weeks in the past, with fears of provide shortages and worsening inflation operating rampant

The intra-day fall meant the blue-chip index was momentarily down 11.3 per cent from its post-pandemic peak of 7672 reached on February 10, putting it firmly in correction territory, which is outlined as a drop of 10 per cent or extra from the newest excessive. 

Nonetheless, its rebound later within the day meant the decline stood at solely 9.3 per cent off February’s peak.

The restoration was partly attributable to a droop within the worth of the pound, which fell to its lowest stage towards the US greenback since December 2020 as merchants piled into the dollar seeking a haven for his or her money.

Traders have gotten more and more jittery concerning the outlook for the worldwide financial system, notably round how provides of uncooked supplies are being disrupted by the battle in Ukraine and sanctions imposed on Russia.

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