The index of UK blue-chips opened at 8.60% lower at £5933,61 compared to it's Friday closing of £6,462.55, in a matter of minutes £130 billion was wiped off
The index of UK blue-chips opened at 8.60% lower at £5933,61 compared to it's Friday closing of £6,462.55, in a matter of minutes £130 billion was wiped off the FTSE 100 in most of its constituent companies. This was because of a stand-off between Saudi Arabia and Russia which added to the anxiety over coronavirus. On Sunday 8 March, the number of confirmed cases in the UK rose to 278, from 209 on Saturday - the biggest rise so far and the country experienced the first death. Since there is no permanent solution the government is trying to help contain the spread of the virus with a suggestion of calling back retired NHS workers on the table and the PM Boris Johnson is expected to chair an emergency Cobra meeting later to decide whether to bring in measures like 'social distancing' to delay the spread of virus. Several analysts are suggesting now could be the right time to buy FTSE 100 shares while many of them trade on valuations that are slightly lower than their historic or normal averages. The FTSE 100 has a strong track record of having comebacks from its difficult periods. It has since overcome two bear markets in the past 20 years, which are the tech bubble and global financial crisis, to post record highs. Although it may take time to be profitable and for the coronavirus outbreak to subside, a turnaround seems likely in the long run.