.jpg)
Today has been a pefect storm for a market slump. With Europe lacking a solution to the debt crisis and the US Federal Reserve announcing Operation Twist, the IMF said the global economy was entering a “dangerous place.
How did this situation feed into the markets?
The FTSE100 managed to keep its nose above the 5000 line today, but only just. At one stage it had fallen over 5% and reached as low as 5016.
In the US, the Federal Reserve didn’t roll out the big guns to save its economy from looming recession, so the markets have swooned.
The Greek stock exchange is down 88% from the pre-credit crunch high, a sobering reminder of what is at stake. That is equivalent to a FTSE fall to below 1000 (806).
What about the future?
The markets may bounce back, but unless the governments of Europe find a solution fast the FTSE will find itself heading quickly towards 4500, on its way to 4000 and perhaps beyond.
~ Clem Chambers is CEO of Europe’s leading stocks and market website ADVFN, Forbes columnist and global media markets commentator ~
