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...
Did the FTSE flash crash just derail the December rate hike? Is UK market stability the Fed's 5th mandate? cc: @federalreserve— zerohedge (@zerohedge) September 18, 2015