Stock market plunges more than 2% as gloomy data from the eurozone and Brexit chaos rattles investors
- The FTSE 100 index has shed 161 points to stand at 7,194 in afternoon trading
- Sterling rose by 1.5% against the euro to €1.17 and 0.7% against the dollar to $1.32
- Germany's manufacturing sector saw lowest reading since July 2012
- France's manufacturing and services sectors contracted
The FTSE 100 index has tumbled by more than 2 per cent today amid concerns over the economic health of the eurozone and continued uncertainty over Brexit.
The UK blue-chip index shed 147.72 points, or 2 per cent, to stand at 7,207.59 at the close following gloomy data from the bloc, especially from France and Germany, which in turn lifted the pound.
Sterling rose 0.7 per cent against the dollar at $1.32 and a whopping 1.5 per cent against the euro at €1.17 thanks to last night's Brexit extension and dire economic data from the eurozone.
A rising pound is generally bad for the FTSE 100 as many of the biggest companies in the index earn their money from overseas so their revenues take a hit.
![Markets: Dire economic news from Germany and France pushed the Footsie in the red](https://i.dailymail.co.uk/i/newpix/2019/03/22/16/0E290D3700000578-6839805-image-m-68_1553271217087.jpg)
Markets: Dire economic news from Germany and France pushed the Footsie in the red
Germany's manufacturing sector - which, due to the country's large level of exports, is often seen as a bellwether for the global economy - saw its lowest reading in more than six years.
The German manufacturing PMI reading dropped to 44.7 – it’s lowest since July 2012, the latest eurozone flash PMIs published today have showed. That's way lower than the 48.0 estimated by analysts and the 47.6 seen last month.
Meanwhile, the French manufacturing and services sectors contracted, with readings coming in at 49.8 and 48.7 respectively.
David Madden market analyst at CMC Markets UK, said: 'The updates underlined how fragile the eurozone is, and traders are worried about how the region would cope in the event of a no deal Brexit.'
It comes as Theresa May last night secured an extension to Brexit, with MPs now having until 12 April to either put forward alternative arrangements, pass the deal or push for another extension.
If the Prime Minister's deal passes, then Britain will have until 22 May to trigger article 50, which would mark the departure of the UK from the EU.
![Sharp fall: The FTSE 100 index has shed 161 points - or a decline of 2.2 per cent](https://i.dailymail.co.uk/1s/2019/03/22/16/11331696-0-image-m-66_1553271035516.jpg)
Sharp fall: The FTSE 100 index has shed 161 points - or a decline of 2.2 per cent
Connor Campbell, financial analyst at SpreadEx, said: 'Trading got bloody on Friday afternoon, some triple-digit declines for the US and European indices capping off a hectic week with a nasty fall.
'As for the FTSE, it actually had its peers beat on Friday, haemorrhaging 2 per cent on a toxic combination of its commodity and banking losses, and a rather remarkable rebound from the pound.'
He added: 'Sterling was up 0.7% against the dollar and a whopping 1.5% against the euro, the currency making the most of both last night’s Brussels Brexit extension – even if it does only further plunge the UK into political crisis – and the dire data elsewhere.
'The pound may want to enjoy its gains while it still can – it is in for another go around on the Brexit rollercoaster next week.'
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