The steepest ever US recession recorded during the second quarter of 2020 has sent the FTSE 100 further plummeting to a triple-digit fall and below the 6,000 point mark.
With negative trading updates from the likes of Shell, Lloyds and Barclays already providing headwinds for London’s bluechip index, news of a 32.9 percent fall in gross domestic product in the US further accelerated the decline of the FTSE 100.
As the US is seen as a proxy for the health of business activity across the globe – news of a severe decline in output has investors fearing what may lie ahead in the next few months following strong rebounds in the stock markets.
The statistics from the US Bureau of Economic Analysis revealed the second quarter annualised rate of decline in the US economy of 32.9% – and is reflective of the lock downs imposed.
A revised estimate on the decline in GDP during the second quarter is also set to be released on August 27th – inclusive of more ‘complete’ data.