FTSE 100 suffers biggest drop since early 2016

FTSE 100 suffers biggest drop since early 2016

  • 2 October 2019
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The UK's FTSE 100 has seen its biggest fall in over three-and-a-half years amid a global sell-off of shares.

The blue-chip index dropped over 3% in its worst day since January 2016. US and European stock markets also fell.

The falls came after poor US jobs and manufacturing figures and a World Trade Organization decision paving the way for $7.5bn in US tariffs on EU goods.

Analysts said these factors had sparked fears over the strength of the global economy.

On Tuesday, one of the most closely-watched US manufacturing figures, the Institute for Supply Management's (ISM) index of factory activity, dropped to its lowest level since June 2009.

Fresh figures on Wednesday showing a slowdown in jobs growth in the private sector in September accelerated concerns over the US economy.

"Given that most other areas in the world aren't covering themselves in economic glory, the fact that the US is having a volatile time makes people a little worried," said Ben Kumar, an analyst at Seven Investment Management.

FTSE 100 falls 3.2%