FTSE 100 falls amid growing recession fear

The demise of the world’s oldest travel agent gave its rivals on the FTSE 100 a boost as one less competitor made investors more positive.

But Thomas Cook’s collapse and the rise in TUI, easyjet and On The Beach was not enough to stave off fears that Europe is heading closer to a recession.

Data from French and German businesses released yesterday was particularly concerning to investors, with the latest manufacturing PMIS in Germany coming in at just 41.4 against a forecast of 44.6.

Anything below 50 is a sign of contraction.

David Madden, market analyst at CMC Markets UK, said: “Germany is the powerhouse of Europe, but the manufacturing PMI reading was the weakest in over a decade, hence why there is selling pressure.

“Trade tensions between the US and China are being felt around the world, which is a factor in the poor eurozone manufacturing updates.”

The mixed messages emerging from the Us-china trade talks over the weekend also exacerbated an already nervous market.

By the end of play, the FTSE 100 ended the day down 18.84 points at 7,326.08, recovering from a 75-point loss in the first hour of trading.

Germany’s Dax lost 1% on the day and France’s Cac was off by 1.1%.

The pound fell 0.11% against the euro to 1.1303 and against the dollar by 0.37% to 1.2427.

The price of oil continued to trade steadily, barely moving from $64 a barrel.

By market close, Brent crude was down 0.08 cents at $64.20 a barrel.