Mouthy Money is a money blog with a beating heart and a big mouth. Made of real people talking simultaneously every single day about real dreams, successes and failures. No jargon allowed.
25 September 2020 - Chancellor Rishi Sunak’s plan to save millions of jobs (more below) from the coronavirus fallout failed to haul UK stocks out of the red on Thursday (24 September). The FTSE 100 ended the day down 1.3% at 5,822.78.
18 September 2020 - The UK’s leading stock market index ended Thursday (17 September) in the red as the Bank of England held interest rates and warned on an “unusually uncertain” outlook for the economy.
11 September 2020 - The FTSE 100 ended the day down by the tiniest of margins on Thursday (10 September) as tensions erupted in the Brexit trade deal talks (see below for more).
04 September 2020 - A sell-off on Wall Street dragged European indices deep into negative territory on Thursday afternoon (3 September).
28 August 2020 - The FTSE 100 dipped 0.75% lower to 5,999.99 on Thursday (27 August) in what was a disappointing day for European markets.
21 August 2020 - The US Federal Reserve’s gloomy prediction of a slow economic recovery from coronavirus weighed heavily on global stocks on Thursday (20 August).
07 August 2020 - The FTSE 100 plunged by 1.27% to 6,026.94 on Thursday (6 August) after the Bank of England (BoE) held interest rates and warned the economic recovery from coronavirus might take another 18 months.
31 July 2020 - Global stocks plunged on Thursday (30 July) following news that the US and German economies shrank 9.5% and 10.1%, respectively, on a quarterly basis between April and June.
24 July 2020 - The FTSE 100 clung onto its earlier gains on Thursday (23 July) despite escalating tension between the US and China, the world’s only superpowers.
17 July 2020 - London stocks slipped on Thursday (16 July) following bleak data revealing how 649,000 UK workers had lost their jobs during the coronavirus.
10 July 2020 - The FTSE 100 plunged sharply on Thursday (9 July) following news that the number of global coronavirus cases had broken through 12 million and were still rising.
03 July 2020 - The FTSE 100 raced higher on Thursday (2 July) following reports of a potential new vaccine for the coronavirus.
26 June 2020 - The FTSE 100 recovered from early lows on Thursday (25 June) as investors seemed to shrug off a sharp increase in Coronavirus infections in the US.
19 June 2020 - The FTSE 100 ended Thursday (18 June) down despite fresh stimulus from the Bank of England, which increased its bond-buying programme by £100 billion.
12 June 2020 - The FTSE 100 plunged 3.99% to 6,076.70 on Thursday (11 June) on the back of investor fears of slower-than-hoped-for economic recovery data emanating from the US Federal Reserve.
05 June 2020 - The FTSE 100 dipped 0.64% to 6,341.44 on Thursday (4 June) as investors took their feet off the gas following three days of consecutive gains for the UK’s blue-chip index.
29 May 2020 - The FTSE 100 finished Thursday (28 May) strongly as major European countries signalled further easing to their lockdown measures.
22 May 2020 - The FTSE 100 ended Thursday (21 May) in the red following fresh data showing a severe drop in business activity in May
15 May 2020 - The FTSE 100 plunge into the red on Thursday (14 May) after Bank of England governor Andrew Bailey warned that the UK’s economy could suffer long-term damage from the coronavirus shutdown.
07 May 2020 - The FTSE 100 held strong on Wednesday (6 May) despite dismal data showing construction output suffered its biggest ever slump in April.
01 May 2020 - The FTSE 100 index of stocks finished 3.5% down at 5,901.21 points on Thursday. The index was sunk by the news that Royal Dutch Shell (RDSA), down 11.37% on the day, was slashing its dividend for the first time since the Second World War due to severe falloff in demand for oil, because of the coronavirus crisis.
24 April 2020 - Investors flocked to housebuilders and carmakers on Thursday (23 April) after many of them revealed plans to return to work following the coronavirus shutdown.
17 April 2020 - A weaker pound helped push the largely dollar earning FTSE 100 into positive territory on Thursday (16 April) in what was a relatively buoyant day for European markets.
17 April 2020 - The FTSE 100 finished Thursday (9 April) strongly despite warnings that the UK economy could shrink by up to 25% in the second quarter of the year if the coronavirus lockdown persists.
03 April 2020 - A surge in the price of Brent Crude helped lift the FTSE 100 into the black on Thursday (2 April), with oil giants Royal Dutch Shell plc (RDSA) and BP plc (BP) among the day’s best performers.
27 March 2020 - The FTSE 100 rebounded from early losses on Thursday (26 March) despite the Bank of England (BoE) warning that the coronavirus could have a damaging long-term effect on the economy.
20 March 2020 - The FTSE 100 bounced back from a near decade low on Thursday (19 March) after the Bank of England slashed rates and pumped £200 billion of fresh quantitative easing into the financial system to protect the economy.
13 March 2020 - The FTSE 100 index of stocks suffered one of its worst ever days on Thursday losing 10.87% of its value as markets responded to the US travel ban on European countries.
06 March 2020 - The FTSE 100 suffered another painful day of losses on Thursday as worries about the coronavirus outbreak once again spooked markets.
As the coronavirus crisis begins to recede and the country tries to return to some kind of normality, the very likely prospect of a widespread economic recession now looms.
As extreme losses take hold, so-called “circuit breakers” are being triggered, particularly in US indices such as the S&P 500. But what are these circuit breakers, and why are they being activated? Stock markets in the USA have circuit breakers to act as a break on ultra-panicky indices. In times such as these they become an increasingly implemented measure to prevent the total collapse of share prices.
How to react when markets tumble is something of a million-pound question. But there are things you can do, and lessons to be learned when indices turn red.
It’s important to remember that different geographic areas offer different advantages for investors, and indeed have different risks.
When you get started with investing, one of the most important considerations is where in the world you want to invest your money. And while there’s no quick answer, different geographic areas of the world offer different advantages, and indeed have different risks, for investors.