FTSE 100 loses £26bn in FOUR HOURS in global shares bloodbath sparked by great Wall Street sell-off – but experts say drop is down to worldwide 'correction' of soaring market
- FTSE 100 plunged 113 points – or 1.6% – wiping billions off UK share prices
- Wall Street traders started sell off with billions wiped off tech giants like Google
- When market closed today the FTSE 100 was down 138.81 as it hit 7006.93
- US President Donald Trump has blamed 'crazy' US interest rate hikes promise
By Martin Robinson, Chief Reporter For Mailonline
Published: 09:33 EDT, 11 October 2018 | Updated: 14:34 EDT, 11 October 2018
Global markets plunged viciously today with £26billion wiped off the FTSE 100 alone after US stocks suffered their worst fall in more than eight months.
Wall Street traders are expected to have another mass sell off today after sending 'golden' stocks in tech giants tumbling with Amazon, Apple and Netflix shares down up to 10 per cent.
Crypto-currencies also plunged, with Bitcoin down $300 to $6,200 each. Today ended with the market closing as the the FTSE 100 was down 138.81 at 7006.93.
US President Donald Trump has blamed 'crazy' US interest rate hikes by the Fed but experts believe the bloodbath is part of a worldwide 'correction' of market.
This morning the FTSE 100 reacted badly to the New York losses and the sell off continued in London with the market down by 113 points – or 1.6% – by lunchtime – wiping around £26billion off its value.
The stock shock had earlier sent Japan's Nikkei down four per cent and the market in China plunged by more than five per cent.
A Wall Street trader looks concerned as markets plunged in New York sparking a worldwide bloodbath
The FTSE 100 dropped sharply this morning (top image) following severe losses on the Dow Jones in New York
US President Donald Trump pictured at the White House last night where he blamed the Fed for the fall by pushing up interest rates too fast
Billions of dollars were wiped off the value of America's biggest technology companies, with Apple, Amazon, Netflix, Microsoft and Alphabet, Google's parent company, among the big losers.
Investors have been selling up over concerns over rising US bond yields, with the US's massive borrowing looking vulnerable given the costs of servicing the debt.
Donald Trump dismissed the rout as a long-overdue correction, but told reporters the US Federal Reserve was 'crazy' for hiking interest rates too fast.
Fears they will increase it again this year is causing panic.
Connor Campbell, financial analyst at Spreadex, said: 'The European open was a proper, old-fashioned bloodbath, reminiscent of the drastic sell-off seen back in February.'
Michael Hewson, chief market analyst at CMC Markets, added: 'US markets look set to pick up where they left off last night in the wake of today's continuation of selling pressure with further losses looking likely.'
In London, housebuilders were among those bearing the brunt of the sell-off, with Barratt Developments 11% or 59.8p off at 495.5p in the FTSE 100.
Alec Young, a director at FTSE Russell, said investors feared that rising interest rates and growing expenses would start eating into company profits, which had been boosted by tax cuts introduced by Donald Trump.
He added: 'The tax cuts juiced earnings this year and that's not sustainable. The market's starting to say that the glass may be half empty.'
Michael Farr, of Farr, Miller & Washington, added: 'Stocks are spooked by higher rates and maybe some inflation that seems to be creeping in. That suggests the Fed will keep raising rates, and that's taking the wind out of the stocks that have done the most.'
Markets in the US have done better than expected this year, setting a series of new records over the summer.
However, after that stretch of relative calm, they have suffered sharp losses over the past week as bond yields have risen. On most days they have recovered some of their losses but that did not happen on Wednesday, when stocks fell further.'
Trader Peter Tuchman works on the floor of the New York Stock Exchange and watches open mouthed as the Dow Jones Industrial Average plunged more than 800 points, its worst drop in eight months
A woman walks past an electronic board showing Hong Kong share index outside a bank In Hong Kong, one of the many markets to fall
Gina Martin Adams, chief equity strategist for Bloomberg Intelligence, said this was partly because of fears these companies could face higher costs. She said: 'Amazon recently announced they were increasing wages, Facebook is spending on security.'
David Madden, a market analyst at CMC Markets UK, said: 'Continued concerns about the political situation in Italy, and the relatively high yields on US government bonds, and the strained global trading relations have all contributed to the decline in European stocks.'