"The London stock market has fallen sharply at the start of trading, as investor confidence is rocked by fears over problems in the US regional banking sector. The FTSE 100 index of blue-chip shares has tumbled by 131 points at the start of trading, a fall of 1.4%, down to 9304 points. Banks are among the top fallers, with Barclays down 4.7%, Standard Chartered losing 4.3% amd NatWest off 3.1%."
"Traders are alarmed that two US banks yesterday disclosed issues with bad and fraudulent loans, raising fears that more problems may be lurking in the sector. This comes on top of rising fears about the private credit sector, with IMF chief Kristalina Georgieva admitting yesterday that this keeps her awake at night. Derren Nathan, head of equity research, Hargreaves Lansdown, explains why markets are sliding, with Wall Street set for fresh losses:"
"US stock futures are down today, as credit concerns compound the jitters over an escalation in US-China trade tensions and the ongoing government shutdown in Washington. This comes after Wall Street closed lower on Thursday. Despite growing hopes of further rate cuts this year, attention is turning to the underlying health of the economy, as emerging credit losses amongst America's regional banks raised further questions about lending practices."
The London stock market opened sharply lower as the FTSE 100 tumbled 131 points (1.4%) to 9304. Major banks were among the largest fallers, with Barclays down 4.7%, Standard Chartered losing 4.3% and NatWest off 3.1%. Asset manager ICG fell 5%. Traders reacted to disclosures by two US banks about bad and fraudulent loans and rising concerns in the private credit sector cited by IMF chief Kristalina Georgieva. US stock futures weakened amid credit worries, escalating US-China trade tensions and a US government shutdown. Large US banks reported strong Q3 results, but emerging regional credit losses raised contagion fears.
Read at www.theguardian.com
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