Fears of a global financial crash as FTSE 100 plummets and Nikkei collapses – London Business News | Londonlovesbusiness.com

In early morning trading the FTSE 100 has plunged and Japan’s Nikkei has collapsed and economists are fearing a global financial crash and a recession in the US.

The Nikkei 225 index fell be almost 13% on Monday which is the worst since “Black Monday” in 1987, Bitcoin has plummeted, Tesla, Microsoft and Google are down and trillions of dollars was lost last week.

The blue-chip index in London was down 1.4%, which fell 193 points to 7,982, Bitcoin has also taken a hit and has fallen below £39,000.

Last week investors were concerned of the prospect of a US recession after the US jobs data started a global market sell-off, which wiped off trillions from global markets.

There are strong fears some of the largest companies could see share fall off a cliff when the New York Stock Exchange opens later on Monday.

Nvidia fell 8.8% and Apple was down by 6.6% on pre-market trading on Monday morning and when trading resumes the Nasdaq 100 could plummet by 3.6%.

South Korea’s Kopsi index fell by more than 9%, markets in Singapore, Thailand, the Philippines Indonesia dropped by 2% and 3%, whilst Taiwan’s Taiex slid 8.4%.

Derren Nathan, head of equity research at Hargreaves Lansdown, said, “The FTSE 100 has opened down as the US sneeze risks becoming a cold.

“Exporters bore the brunt of the sell-off as contagion from last week’s poor employment and manufacturing data in the States put recessionary fears back on the table.

“The discussion around September’s rate decision at the Federal Reserve Bank has moved from if to how much, with the odds now moving in favour of a half point cut.”

Chris Beauchamp, chief market analyst at online trading platform IG, said: “Markets are in absolute turmoil this morning thanks to the Nikkei 225’s biggest one-day drop since 1987, which has wiped out the index’s gains for the year.”

He added the FTSE and EU stock are on track for difficult day, saying, “Investors continue to flee tech stocks, and the Nasdaq 100 is expected to open down 1000 points lower from Friday’s close, a loss of over 5%.”

“This is a perfect demonstration of what happens when everyone tries to sell at once.

Such moves don’t stop in a single day and we likely have a summer of volatility ahead of us, particularly as we await developments in the Middle East.”

Sky News reported, Robert Carnell, from financial services firm ING, said, “What we are looking at now is a situation where the market is viewing what’s going on in the US macro economy as ticking the recession box.”