FTSE 100 Falls Sharply After Post Referendum Highs
The FTSE 100 stayed steady for most of last week ahead of the Scottish referendum before climbing to a high of 6,875.80 after it became apparent that Scotland had voted against independence. However, since Friday it has fallen sharply to lows of around 6,687.
The fall came as data emerged showing that the euro zone manufacturing purchasing managers’ index fell to a 14 month low of 50.5 from 50.7 in August. Furthermore the PMI fell to a three month low of 52.8 from 53.1 in August after it was expected to rise to 53.0. The euro zone composite output index also fell to a nine month low of 52.3 from 52.5 in August.
It seems likely that the FTSE 100 will continue in this downwards trend until either some positive data is released or measures are taken by the European Central Bank to help the situation in the euro zone.