OptionsDesk broker Simon Hanouka speaks to Thomas Warner from Proactive about a heavy fall in the value of the FTSE 100, following news overnight that the US Federal Reserve is determined to continue raising interest rates after a brief pause in June.
Hanouka says that the news prompted a "panic sell" that has continued to impact the UK market throughout the day so far.
The FTSE 100 hasn't closed below 7,000 points since November 2022.
Hanouka also highlights the impact of bearish economic data from China and looks ahead to the US non-farm payroll data expected on Friday.
Ahead of tomorrow’s data a trio of reports on the labour market all proved stronger than expected on Thursday, sending Wall Street stock futures even lower.
ADP announced a surprising 497,000 leap in June private payrolls, more than double the consensus forecast of 225,000.
Challenger reported a 25% increase in June layoff announcements, slowing dramatically from a 287% leap in the year to May.
And the latest US initial unemployment claims increased by 12,000 to reach 248,000 during the week ending 1 July, 2023, a touch higher than the 245,000 number economists had forecast.
Initial claims for the previous week were revised down by 3,000 to 236,000.