FTSE surges 6% in early morning trading

Volatility in response to coronavirus continues to create unstable markets

Article updated: 13 March 2020 11:00am Author: Helal Miah

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  • FTSE up by over 6% this morning
  • Yesterday marked the biggest one day fall since the ’87 crash
  • For investors wishing to take a punt now, they may be rewarded over the medium to longer term
  • Those of a more nervous disposition may just want to sit tight until the volatility dies down

In my 20+ years in the industry I find it difficult to remember another week of such momentous moves. We had some big moves during the financial crisis and sovereign debt crisis and the odd flash crash, but they never had the extreme one day moves as we have had this week. Following yesterday’s biggest one day fall since the ‘87 crash, this morning the market opened up by over 6%. This can be attributed to no new drastic measures being taken by governments around the world in regards to containing the virus outbreak. Some investors may ask whether this is the bottom, which it could be, but seasoned traders and investors will merely see it as a dead-cat bounce.

The question is whether markets can hold on to these levels through the day. That may be hard to do as nervous traders and investors will not want to hold positions through the weekend, especially after what happened over the last weekend, and we may see some selling action again towards the end of the day. For investors wishing to take a punt now, they may be rewarded over the medium to longer term. Those of a more nervous disposition may just want to sit tight until the volatility dies down.


All information given including prices, yields and our opinion is correct at the time of publication. Our opinions on investments can change at any time and for our latest view please go to www.share.com. To understand how our Investment research team arrive at their views please read our Investment Research Policy.

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Helal Miah

Investment Research Analyst

After graduating with an economics degree from University College London, Helal started his career within private banking at Smith & Williamson Investment Management and later held analyst and fund manager roles with the Industrial Bank of Japan, Schroders and Mitsubishi Corporation. He is a chartered fellow of the Chartered Institute for Securities & Investment. 

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