FTSE 100 hits lowest level since 2016
The FTSE 100 has now lost 3.7% for the day.
The new intra-day low of 6,444 points is the lowest level since July 2016, when the fall in sterling made UK-listed companies relatively cheaper.
The new low came after new figures showing an accelerating spread of coronavirus in the UK.
James Ingram, an investment manager at MB Capital, said:
In the midst of all of the reporting on Coronavirus this was potentially going to be the most easily missed non-farm payroll announcement in recent history. We had a strong healthy start to the year with January’s number being revised upwards from 225,000 to 273,000 and today’s number for February coming in much stronger than expected also at 273,000. Couple this with the panicked rate cut of 0.5% by the US Fed and it places the economy and the stock market in a great position.
My only fear is a weaker [reading] may have had a larger impact and created the urgency for the US to consider further stimulus, which would have buoyed the market and helped calm fears about the risk Coronavirus could have on ebbing away business revenues over the near future.