THE FTSE 100 fell again yesterday, putting it on course for what is expected to be its longest weekly losing streak since the 2008 financial crisis.
The blue-chip index would have to rally by 106 points today to reverse what will otherwise mark its first six consecutive weekly decline in over five and a half years. Yesterday, the FTSE slipped 0.96 per cent to 6,445.25, meaning that it has already fallen 1.6 per cent this week.
The companies listed on the FTSE make an estimated quarter of their revenues in the US, and analysts said the recent weakness was due to uncertainty over when the Federal Reserve planned to start scaling back its massive $85bn a month stimulus programme.
“The market doesn’t know – is the tapering going to start, or isn’t it? When you get that sort of uncertainty with something so important, that just puts a lid on any further progress,” said Stephens at RD Signature.
The recent weakness of the FTSE has also been exacerbated by the pound, which hit a two-year high against the dollar this week, eating into the revenues of British exporters.