Footsie plunges as debt fears in Europe mount
Feb 6 2010 by Peter McCusker, The Journal
EUROPEAN debt fears sent the FTSE 100 Index hurtling back towards the 5000 mark today in a second straight session of heavy losses.
The Footsie dropped nearly 100 points at one stage, with other European markets deep in the red, amid concerns over the health of debt-laden countries such as Greece, Portugal and Spain.
British banks were among those hit hardest in the sell-off as figures revealed the sector has a near £100 billion exposure to the struggling European economies.
US jobless figures showing a fall in the rate of unemployment did little to ease the UK stock declines, with the FTSE 100 closing down more than 1.5%.
The top tier plunged 2% yesterday as the concerns first emerged over the precarious financial position of some European countries.
The European Commission approved a turnaround plan for the Greek economy this week involving savage cuts – but this has prompted a wave of strike action and stock exchanges across Greece, Portugal and Spain came under heavy pressure.
London’s FTSE 100 is now trading close to the 5000 mark – a level not seen since last November – having started again on the back foot today after heavy falls on Asian stock markets overnight.
Yesterday’s fall alone wiped more than £29 billion from leading shares and the index has now lost around 9% since hitting 5600 in early January.
