FTSE plunges as economic indicators slump Go compare with our comparison table

FTSE plunges as economic indicators slump

05 August 2011 / by Oliver Roylance-Smith

The FTSE 100 plunged well below the 5,300 mark today amid escalating concerns over the eurozone debt crisis and the strength of the global economic recovery on both sides of the Atlantic.

The benchmark index of UK blue-chip shares has been in continuing decline, on Thursday dropping 191 points, or 3.43%, and a further 146 points, or 2.7% today to close at 5,247.

Compared to its opening level at the start of the week, the FTSE has dropped a total of 568 points as at close of play today, equating to a loss just shy of 10% for the week and the worst weekly performance since just after the collapse of Lehman Brothers in 2008.

Global meltdown

Losses were also seen across the channel in Europe as the negative outlook for the sovereign debt crisis started to take its toll. This situation is likely to go on and on until there is decisive action by European governments but to date this has not looked likely and so the survival of the euro remains uncertain.

The story was no different across the Atlantic where concerns heightened that the US is facing serious financial turmoil. With a heavy barrage of negative economic news fears of a double-dip recession are increasing along with the reality that should this occur, it is likely to drag the rest of the world down with it.

Investor impact

Compared to the 52 week high for the FTSE of 6,105, today's closing price is 14.1% lower and with worsening economic indicators, these are difficult times for investors.

Having direct exposure to market volatility via individual shares or investment funds can be extremely challenging during times like these. Being told not to panic is one thing, living through it is another.

This is where the defined risk and defined returns associated with structured investments can be appealing since it moves the investor’s focus away from the daily ups and downs. Before the investment is made the details of the exact term, the returns available and the particular criteria required to receive those returns are provided.

With a wide range of different structured investments available, there is plenty of scope to find a solution that meets investor’s needs. There is also the added benefit of there being no hidden additional costs since all charges are taken into account within the investment returns detailed.

Compare structured investments »

No news, feature article or comment should be seen as a personal recommendation to invest. If you are in any doubt as to the suitability of a particular investment please contact us for advice.

The value of investments and income from them can fall as well as rise and you may not get back the full amount invested. Different types of investment carry different levels of risk and may not be suitable for all investors.


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 Product NameISA OptionMaximum Potential ReturnTermMore Info
FTSE 100 Enhanced Kick Out Planyes

10%

per annum

Up to
6 years
More Info >
Structured investment plan with the potential to mature after years 1, 2, 3, 4, 5 or 6. If the plan matures early it will return 10% times the number of years the plan has been in force. Also available for Stocks & Shares ISA and ISA transfer.
FTSE 100 Defensive Kick-Out Planyes

8.0%

per annum

Up to
6 years
More Info >
Structured investment plan with the potential to mature after years 3, 4, 5 or 6. If the plan matures early it will return 8% times the number of years the plan has been in force. Also available for Stocks & Shares ISA and ISA transfer.
Kick Out Deposit Planyes

3%

per annum

Up to
6 years
More Info >
Capital protected deposit plan with the potential to mature after years 3, 4, 5 and 6. If the plan matures early it will return 3% times the number of years the plan has been in force. Also available for Cash ISA and ISA transfer.
FTSE Defensive Kick Out Planyes

7.15%

per annum

Up to
6 years
More Info >
Structured investment plan with the potential to mature after years 2, 3, 4, or 5. If the plan matures early it will return 7.15% times the number of years the plan has been active. Also available for Stocks & Shares ISA and ISA transfer.
4 Year Deposit Planyes

12%

at end of term

4 yearsMore Info >
4 year capital protected structured deposit plan which aims to return 12% if the FTSE 100 is higher. Also available for Cash ISA and ISA transfer.
6 Year Defensive Deposit Planyes

24%

at end of term

6 yearsMore Info >
6 year capital protected structured deposit plan which aims to return 24% if the FTSE 100 is higher than 95% of Initial Level. Also available for Cash ISA and ISA transfer.

The value of investments and any return from them can fall as well as rise and you may not get back the full amount invested. Please ensure that you read the Important Risk Information below.