Tuesday, 6 February 2018

FTSE 100 tumbles after dramatic losses across US and Asia.

The FTSE 100 fell sharply on Tuesday morning, following dramatic sell-offs across the US and Asia, sparked by inflation fears after strong US jobs data triggered a surge in bond yields.

The UK’s benchmark stock index tumbled 3.5 per cent shortly after the market open, mirroring similar losses across France, Germany and other European markets.

Earlier on Tuesday, Japan’s Nikkei 225 tumbled 4.7 per cent, marking its worst fall since November 2016 and taking it to a four-month low.

On Monday, the US benchmark S&P 500 fell by more than 4 per cent and the Dow Jones Industrial Average lost 4.6 per cent. Those represented the largest percentage drops in a single day since August 2011.

Traders agreed that the primary trigger for the global stock rout was a sharp rise in US bond yields after data out of the US on Friday showed wages increasing at the fastest pace since 2009.

By Josie Cox.

Full story at Yahoo News.

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