The FTSE 100 index , which is the index containing the 100 most prestigious companies on the London stock exchange plummeted to a one month low on Friday.
There has been some degree of volatility in that particular index during the course of the last 30 days, but overall it has been quite steady and fans back each day.
On Friday, December 16 however, it’s suddenly plunged to 7306, representing its lowest point by far in over 30 days.
Just three days earlier the FTSC 100 index was standing at a very healthy 7526 so to plunge more than 200 points in three days is quite a downward spiral.
Perhaps some of the reason, for it is actually short term rather than anything to do with an overall lingering knowledge that the UK economy is generally struggling and has been for some time.
In fact, some analysts are noting that this is more to do with strikes in the public sector which are taking place during the course of this week having started on Friday last week, which coincides with the sudden plunge of the FTSE 100 index, and that these public sector strikes which affect the logistics and civil service could impede the operations of large corporations.
This would make sense, because of course, everybody is already accustomed to the difficulty economic circumstances which surround the overall UK economy there for such circumstances, would not be likely to have caused the sudden downturn in share performance.
It is, therefore, perhaps, worth looking out for how the FTSE 100 index performs after the strikes have finished and a possible settlement with workers unions may well be reached.
Trade global indices with zero commission and tight spreads with the Innovative Broker of 2022*. Open your FXOpen account now or learn more about making your money go further with FXOpen.
* FXOpen International, best ECN broker of 2022, according to the IAFT
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
