Stock markets across the UK, US and Europe have slumped to major losses this week as more companies warn of falling profits and production issues, leaving investors with major loss of confidence and risk aversion. In the UK, the FTSE 100 has seen a loss of 100 points and almost £100 billion across Monday and Tuesday, leaving it at its lowest point in almost five months. Monday also saw the biggest one-day decline in four years.
On Wall Street, 3.15% was wiped off the markets yesterday (Tuesday), while the Dow Jones also dropped 100 points on Monday. The heavy losses impacted a range of companies, with notable casualties in the travel sector, with the cruise company Carnival slumping to a 6% loss, tour operator Tui absorbing a 5% loss and airline easyJet suffering a more than 20% loss Monday and Tuesday.
The vice president of trading and derivatives at stockbrokers Charles Schwab said this picture could become worse still, saying “For the first time in a while we’re finally waking up to the fact that this issue could go on for a while and have a significant impact on Chinese and global economic growth and potentially the United States.
“When people react to it because they don’t travel or go to restaurants or go shopping, that’ll have an immediate impact on the economy.”
Gold of course becomes an incredibly attractive asset in times of economic uncertainty –and with this uncertainty all but certain to continue, buy now to capitalise.