FTSE opens down again as it falls 5.4 per cent despite global central banks stepping in after one of the worst weeks in its history amid virus crisis
The FTSE 100 opened down again today as it fell 5.4 per cent despite global central banks slashing interest rates after one of the worst weeks in its history.
The index of Britain’s leading companies fell 288 points to 5,077 shortly after opening this morning.
The blue-chip index enjoyed a brief rally last Friday but managed to cling onto gains of just 2.5 per cent as fears over Covid-19 continued to chill the economy.
Last week, £286billion was wiped off the value of FTSE 100 firms as investors dropped their shares, fearing coronavirus will cause a major economic slowdown and even a recession.
The FTSE 100 index is shown falling this morning (far right) and last Friday (rest of the graph)
An electronic signboard at KB Kookmin Bank shows the KOSPI index down in Seoul today
Since the sell-off began in earnest, on February 24, the index has lost a quarter of its value, or £460billion.
The Bank of England announced an emergency injection of money into the economy this week, including an interest rate cut from 0.75 per cent to 0.25 per cent.
Though this will make it cheaper for companies to borrow, it has hit savers who were already suffering with near record-low rates.