Market Mayhem as FTSE Drops 10%, Oil 7.5% Gold Down 3.5% 17:00 Update

The selling intensity today was pretty historic and broad across all indices and asset classes as market participants either flocked  to cash or were enforced sellers under margin calls. Gold ,which had proven to be a safe have up until now dropped, $100 in a couple of hours to revisit the $1540 levels having recently touched $1700. Bitcoin and other cryptocurrencies dropped 20-30% .

The FTSE 100 revisited levels last seen in 2012 as all of the gains in the  intervening  8 years were summarily dumped over the past 2 weeks.

The FTSE 250 sold-off close on 10% while AIM All Share lost 7.5%. In Europe, the German DAX was down 12.2% and the CAC down 12% while  US indices all sold-off heavily with the S&P 500 down over 8% at pixel , the DOW down 9% and the NASDAQ down 8.

The extent and intensity of the selling today had the feel of a final capitulation which often occurs at the end of a prolonged series of days in red: put simply, the market runs out of sellers. Some of the sector drop today were  eye popping, in the FTSE 350 of sectors, 17 sectors were down double digits with Mining down almost 15%, Oil and Gas  and Travel & Leisure down 13% the list of casualties goes on. That said, it is never sensible to try and call the bottom and markets do have a habit of staying irrational much longer than one can stay solvent. Better to wait for indicative green shoots or a credible catalyst that gives the markets reason for stabilization and consolidation of the recent tectonic moves. No matter what, it will take some time for any kind of significant recovery from this current destablising collapse.

While there is little doubt that the COVID-19 pandemic is a root cause of concerns, the combination of the US's travel ban on all European countries  and ta distinct disappointment on  ECB's Laguarde didn't provide the right level of support

The market dashboard below shows that pretty much everything in the UK went on sale today : 1341 stocks dropped  while just 44 rose and only 266 were unch and almost 800, half of the total universe covered by runprofits,, made 52 week lows.