The FTSE twice had its worst day since the 2008 financial crisis in recent weeks. That followed a worldwide trend of financial struggles with several indexes seeing billions wiped off their value as investors sold off shares.
Which shares have gone up today? Which has fallen?
Thanks to the Bank of England cutting interest rates from 0.75 to 0.25 percent, share prices on the index of Britain’s biggest companies rose.
They up by 124 points, a 2.1 percent increase on the previous day’s trading, to 6,084 at opening on Wednesday morning.
The BoE said the decision to cut rates was because of the spread of COVID-19.
It said its role is to help the country’s businesses and people through the economic crisis caused by the virus.
The index’s housebuilders appear to have been boosted by the BoE’s announcement.
Lower interest rates tend to help boost the housing market.
That has helped Persimmon, Taylor Wimpey and Barratt increase their share price between 3.6 and 4.2 percent early on Wednesday.
Additional help from high street banks like RBS and NatWest – who have suspended mortgage payments for people affected by COVID-19 – seems to have further stabilised the housing market.
What is happening to the stock market amid COVID-19 fears?
Last week the UK’s stock market, the FTSE 100, had its worst week since the 2008 financial crash.
Over the course of five days, about £210bn was wiped off the value of the UK’s biggest businesses, with the blue-chip index falling 13 percent.
When a new disease starts to spread across the world, investors can become twitchy because there is the potential to disrupt supply chains, shut down factories, stop consumers from spending their money, so they sell shares.
But despite episodes of volatility – like the SARS outbreak in 2002 – stocks, in general, go up over time, however, every instant is different and the past does not guarantee how the future will play out.
Published at Wed, 11 Mar 2020 11:00:00 +0000