Markets went a tumble again yesterday, and it took very little to spark the sell off. All the good work from last week, which saw a gradual recovery in key indexes was cancelled out, as the FTSE 100, for example, fell by 139 points and the Dow Jones Industrial average plummeted by 184 points.
Perhaps, what is most worrying about the falls, is how so very little was required to trigger the sell off. Oil rose, passing $72 at one time, but actually ended the day less than a dollar up on the day before. And news came in to say the US consumer is cutting back, but the news really wasn’t that bad.
The US consumer Confidence Index, published by the Conference Board, saw a big drop, falling from 109.8, to 103.2. But, then again, markets had expected worse, and as the score from the previous month was a four year high.
In the UK, one of the FTSE 100’s largest companies announced its biggest ever loss, and you could be forgiven for concluding Vodafone woes were behind the FTSE 100 fall, but in fact the company’s share price barely flickered.
It all goes to show how sensitive the markets are at present. Panic setting in at the slightest piece of bad news.
© Investment & Business News 2013