Stock market CRISIS: Panic as FTSE hits four-year low and investors ‘give up’ on banks
GLOBAL stock markets were flashing red again today as fears over the world economy and another world recession loom ever larger amid worries central banks have run out of ammunition to tackle problems.
By LANA CLEMENTS
Express.co.uk
Tue, Feb 9, 2016
Banks in Britain and Europe are taking the biggest hits, with Barclays, RBS and Lloyds Bank taking heavy hits alongside Deutsche Bank and Commerzbank in Germany.
The FTSE slumped to its lowest point in four years as it closed at at 5632 points.
The index of the top 100 companies on the London Stock Exchange has not been as low since August 2012.
While Chinese and Hong Kong stock markets are closed until the end of the week as part of national holidays.
Michael Hewson, chief market Analyst at CMC Markets UK, said: “If investors were hoping for a quiet week away from concerns about China with Chinese markets closed for Chinese New Year, they got a very rude awakening yesterday as stock markets sold off hard, and there was no respite in Asia markets either despite a late rebound off the lows in the US and as such we could well see European markets open lower today.
“European banks face a host of problems, including falling profits, a slowing global economy and negative rates reducing their ability to boost their profitability, at a time when a lot of them are being encouraged to boost lending to the wider economy as well as improve their capital buffers.
“Quite simply they can’t do all of them at the same time.”
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