UK Stocks Flash-Crash As BP, Banks Plunge; LSE Investigating

Chatter of a fat-finger trade, then exaggerated by the algos, has smashed UK's FTSE 100 lower instantly this morning, dragging major firms with it...

  • *HSBC DROPS 4.8% IN UK TRADING, QUICKLY REBOUNDS TO 2.3% LOSS
  • *BP DROPS 4.7% IN UK TRADING, QUICKLY REBOUNDS TO 1.8% LOSS

As with all these plunges, the machines BTFD but the rebound is weak.

As Bloomberg noted:

  • *FTSE 100 SUDDENLY DROPS TO LOWS, FALLS 1.9%

 

More desk chatter seems to confirm a massive seller dumped a basket of FTSE 100 stocks at 0744ET.

Do not fear, the regulators are on it...

  • *LSE INVESTIGATING SUDDEN MOVE IN FTSE 100 INDEX, SPOKESMAN SAYS
  • *NO TRADES HAVE BEEN CANCELED, LSE SPOKESMAN SAYS

Of course in the new world, post-Yellen's press conference yesterday, we wonder...

Charts: Bloomberg