Bloodbath sees £ 52bn wiped off top shares

SOME £ 52billion was slashed from the FTSE 100 in a trading bloodbath yesterday, as markets plunged on fears of tougher Covid restrictions.

The share index plunged 3.4 per cent, or 203 points, as a global sell- off saw European and US stocks plummet in price.

Sterling suffered too as the prospect of more pain caused by the pandemic added to deepening worries over fraught Brexit talks.

Within a couple of hours of opening the index plunged by 3 per cent, then dipped further as Government advisers warned that strict measures would be needed to curb surging infection rates.

Companies exposed to any new restrictions, including travel firms and housebuilders, saw their stocks face a renewed run from risk.

The slump to 5804 points means the index is 23 per cent down so far this year, but still well above the March low point which saw panicselling force it below 5,000.

Yesterday’s sell- off, which took £ 51.7billion off the top 100 companies, was the biggest one- day slump since June. British Airways’ owner IAG was the biggest faller, down 12 per cent, leaving its shares nearly 77 per cent lower than when they started 2020. Rolls- Royce dropped nearly 11 per cent.