Markets slump as Barclays struggles
World stock markets saw across-the-board drops on Thursday as Barclays announced late Wednesday that its banking division is suffering financial hardships, and saw its own stock drop to its lowest levels since January. Other factors which contributed to the bleak day in world stock markets were slow growth in manufacturing, particularly in China and the European Union (EU), as well as a 30 per cent drop in home sales throughout the US.
Barclays saw its share price slide by five per cent, and the overall drop in the London FTSE 100 was 111.12 points to 4805.75. The drop has been significant during the past six months, as the FTSE 100 has spiralled downward by nine per cent during that time. In terms of the pound, the value has lost nearly £130 billion of its value during the past half-year, one of the poorest performances in FTSE 100 history.
Spain’s financial condition contributed to the growing trend of downward growth as well, as Moody’s announced the possibility of downgrading the country’s current triple-A rating. Other EU fears regarding debt in member states has also contributed to a decline in confidence regarding the banking system, particularly in Spain, as a credit rating firm announced that a large portion of debt in that country’s banks was to be put on review.