The Shanghai Composite stock market lost another 3.5 percent on Friday, as authorities appear powerless to halt investor fears. The negative sentiment has had a brutal impact on British markets with around £113billion wiped off the FTSE in the last 10 days. London’s stock exchange was in the red again today as it nursed losses of more than two percent. The bluechip index is down almost three percent since the start of 2016.
In the US energy and financial companies were hit and the Dow Jones industrial average was down more than 400 points, extending its losses for the year. Sell-offs were fuelled as oil prices went under $30 a barrel to reach their lowest level since 2004. The arrival of the bear market – where investor sentiment enters a downward spiral of panic and pessimism prompting huge sell-offs – sees values pushed lower to fuel more negative sentiment and yet more selling. FULL REPORT