THE UK’s FTSE-100 index of leading shares plummeted this morning, showing a loss of nearly 600 points at its intra-day low, amid a global sell-off triggered by mounting fears over the economic impact of the coronavirus and a plunge in oil prices.
At 1.28pm, the FTSE-100 was trading down 498.17 points at 5964.38. It touched an intra-day low of 5891.56 points, having finished last week at 6462.55 points, following a 242.88-point tumble on Friday.
Oil prices have tumbled over recent sessions as fears have grown over the impact of the COVID-19 coronavirus outbreak on global growth.
However, they plummeted overnight on news that Saudi Arabia was launching an oil price war against Russia.
Russ Mould, investment director at AJ Bell, said: “The accompanying slump in share prices of oil and gas firms is unsurprising and a big contributing factor to the scale of the FTSE- 100’s collapse as index heavyweights BP and Royal Dutch Shell drop 20%.”
Mr Mould noted the UK All-Share Index had now entered bear-market territory for the 11th time since its launch in 1962.
He said: “It has taken just 52 calendar days for the FTSE All-Share to fall from January’s post-election high into bear market territory, to give further life to the old saying that ‘markets ride the escalator up and the elevator down.”
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