FTSE 100 in bear market amid sharp global falls

Discussion in 'Market News' started by Lily, Jan 20, 2016.

  1. Lily

    Lily Forum Member

    Aug 29, 2015
    Likes Received:
    Slumping oil price and gloom at Davos sends FTSE 100 tumbling to level that represents 20% decline from its peak

    Global shares are falling sharply again after Tuesday’s brief rally, with the FTSE 100 entering bear market territory with a 20% decline from its peak.

    Another slump in the oil price is the driving force behind the losses, along with gloomy predictions about the global economy from delegates at the World Economic Forum in Davos.

    Ugly; very very ugly, describes current equity markets, with momentum swinging negative yet again and the bears firmly in control. The fledgling hope from yesterday that markets were on the turn has been quashed by sharp overnight falls in Japan and Asia which has seen European markets fall aggressively. With every upturn being followed by deeper falls, investors are increasingly wary as it becomes more and more difficult to determine what might happen next.

    Oil prices remain under pressure, but the consumer benefits of lower energy prices and higher disposable income have yet to filter through to the wider equity market, which remains unremittingly negative in the face of further prospective asset sales by oil exporting countries’ sovereign wealth funds.

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