InvestmentsMar 13 2020

FTSE swings back 3% after worst day in 30 years

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FTSE swings back 3% after worst day in 30 years

UK shares have bounced back by 3 per cent this morning (March 13) after dropping nearly 11 per cent yesterday — the worst daily dip in more than 30 years.

The FTSE 100 opened 5.5 per cent up at 8am following yesterday’s coronavirus crash but has since dipped again to a 3 per cent rise.

Other European indices have also recovered slightly, with Germany’s Dax up 2.8 per cent and the Euro Stoxx 600 rising by nearly 4 per cent this morning.

This morning the Financial Conduct Authority prohibited short selling of a number of shares in Italian and Spanish firms following yesterday's market falls in those countries.

Meanwhile share markets across the Asia-Pacific region experienced big swings. The Nikkei 225 — Japan’s measure — fell by more than 10 per cent but bounced back to finish 6 per cent down.

The Australian exchange, ASX 200, was at an 8 per cent low mid-trading but finished the day up 4 per cent, its biggest swing on record.

Within the FTSE 100 the biggest risers today included mining and oil companies BHP and Rio Tinto, both up about 9 per cent this morning after falling dramatically when the oil prices dropped 30 per cent on Monday (March 9).

Anglo American, the world's largest producer of platinum, is the biggest riser as of mid-morning, up nearly 13 per cent.

Travel and tourism companies are still suffering as global travel slows due to the growing coronavirus crisis, with Italy and Ireland on lockdown and the US banning most travel from Europe.

Carnival, TUI and Flutter Entertainment — all within the travel and tourism sector — are down today. Carnival leads the charge with another 10 per cent knocked off its share price.

Stock markets have been dropping across the globe since the coronavirus started to become a major issue at the start of the year. Since January 1, the FTSE 100 and the Euro Stoxx 600 have seen a third wiped from their share price while the S&P 500 is down 15 per cent.

Yesterday prime minister Boris Johnson announced the UK would move from the containment stage of the coronavirus fight to the delay phase, reminding everyone to wash their hands and telling anyone with symptoms to self-isolate for seven days.

imogen.tew@ft.com

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