FTSE suffers worst one-day fall since 1987

London’s FTSE 100 index suffered its biggest one-day fall since 1987 with more than £160 billion wiped off the value of blue-chip stocks amid Covid-19 carnage on global markets.

The top flight plummeted 10.9 per cent or 639.04 points to 5,237.48, marking its biggest fall since 20 October, 1987, the day after Black Monday. The drop also took the FTSE 100 down to its lowest level since 2011.

It came amid a market meltdown worldwide, with indices tumbling across Europe and in America after US president Donald Trump suspended travel from most of Europe to America andastheworldhealthorganisationupgraded the coronavirus outbreak to a pandemic.

The Dow Jones Industrial Average was 8 per cent lower around the time of close in London.

David Madden, market analyst at CMC Markets,

branded it “madness in the markets”. He said: “It has been yet another horrendous day in the markets as fears surrounding the health crisis continue to rise. Trump’s travel ban set the scene… dealers remained in selling mode.”

In currency markets, the pound slumped 1.8 per cent to $1.26 and 0.9 per cent to €1.13.

Travel-related stocks were among the worst affected in the equity free fall.

Carnival tumbled 277.5p to 1,289p after its Princess Cruises arm announced it was to cancel trips as coronavirus continues to spread.

Legal & General and Prudential were also high up on the biggest casualty list as investors fretted over the cost implications for insurers of the pandemic, plunging 37.7p to 182.9p and 177.2p to 884.8p respectively. There were no risers.