FTSE Slips To One-Year Low On Growth Fears

Written By Unknown on Minggu, 12 Oktober 2014 | 14.47

The FTSE has closed at its lowest level in nearly a year with a crisis of confidence over the global recovery.

It came as there were warnings about a triple-dip recession in the Eurozone at the IMF's annual conference in Washington.

Data from Europe's biggest economy, Germany, points towards a serious slowdown, with exports falling 5.8% in August - the biggest monthly fall in five years.

The FTSE 100 Index ended the week 91.9 points lower at 6340.

It leaves London's top 100 listed companies worth £140bn less than they were just over a month ago, and at their lowest ebb since last October.

Video: The Week's Big Business Stories

Worries about the global economy, particularly in Europe and Asia, have been accompanied by a wave of selling in energy and commodity stocks due to a sharp fall in the price of oil.

The Ukraine crisis and spread of the deadly ebola virus have also added to fears.

Wall Street saw its worst week since May 2012, with the Dow Jones industrial average down to 16,544.

Germany's Dax was down 2%, extending its losses for the week to 4%, and France's Cac 40 fell by more than 1% on Friday.

On Wednesday, the IMF downgraded global growth for this year and next, and lowered its assessments of Germany, France and Italy.

However, it kept its UK growth estimate for this year static at 2.7%.

That prompted Chancellor George Osborne to warn: "I'd be the first to say we're at a critical moment because the Eurozone risks slipping back into recession and crisis and that is already having an impact on the UK."

Around 50% of UK exports go to the EU.


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