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Summary
- Most of the markets across the globe encountered a massive midweek sell-off
- Dow Industrials and Nasdaq Composite plunged more than 1 per cent
- Bitcoin, the largest crypto asset, crashed a little more than 20 per cent
- Reacting to the development, FTSE 100 slipped below the level of 6,900
Most of the markets across the globe encountered a massive midweek sell-off, apparently perpetrated by the collapsing value of the cryptocurrencies and renewed fears of inflations in major economies.
Bitcoin, the largest crypto asset in circulation, has crashed a little more than 20 per cent, to a 24-hours low of $30,000, while ethereum has nosedived over 40 per cent.
Bitcoin (10-day performance)
(Source: Refintiv, Thomson Reuters)
The sudden sell-off in the crypto market has developed an unforeseen volatility in the share markets with Wall Street starting on a negative note. Within the opening hour, the Dow Industrials and the tech-heavy Nasdaq Composite plunged more than 1 per cent, sending the shockwaves to indices across the globe.
Reacting to the development, London equities extended the morning losses with FTSE 100 slipping below the crucial level of 6,900 in the late afternoon session.
FTSE 100 (19 May)
(Source: EODHD/Others, Thomson Reuters)
According to the latest London Stock Exchange data, FTSE 100 dropped as much as 1.95 per cent to an intraday low of 6,897.06. We take a look at the major blue-chip stocks that are dragging the benchmark index.
1. Anglo American Plc (LON: AAL)
Shares of the Johannesburg-headquartered mining giant fell nearly 6 per cent after the company reported that its diamond business De Beers has been affected by lower sales due to widespread nature of Covid-19 pandemic’s second wave in India. The nation is responsible for cutting and polishing a major chunk of product. The stock slumped 5.74 per cent to GBX 3,120, emerging as the biggest loser among FTSE 100 shares.
(Source: Refintiv, Thomson Reuters)
2. Glencore Plc (LON: GLEN)
Shares of the Baar-headquartered commodity traders and mining major tumbled over 4 per cent, in line with the fall in other heavyweight shares. As per LSE, shares touched an intraday low of GBX 308.80, down 4.87 per cent from the previous close of GBX 324.60 apiece.
3. BHP Group (LON: BHP)
Shares of the Melbourne-based miner witnessed a major crack with the stock plunging nearly 5 per cent. The stock of BHP was the third-biggest loser among the 101-constituent deck of FTSE 100, while it was the second-biggest loser among the big heavyweights. BHP shares shed as much as 4.93 per cent to GBX 2,130 from the previous market price of GBX 2,240.50.
Other large-cap shares that contributed to the fall of FTSE 100 include Compass Group Plc (LON: CPG), Experian Plc (LON: EXPN), Royal Dutch Shell Plc (LON: RDSA), Rio Tinto Plc (LON: RIO), Vodafone Group Plc (LON: VOD), CRH Plc (LON: CRH), BP Plc (LON: BP), Barclays Plc (LON: BARC), Prudential Plc (LON: PRU), and Lloyds Banking Group Plc (LON: LLOY).
