Unless something truly remarkable happens in the next two hours, the FTSE 100 will close today"s shortened trading down around 32 per cent on the year - the worst twelve months in its history.
Trading closes early today for New Year"s Eve, opening the day at 4392.68 - an extraordinary dip from its year opening of 6456.90.
The volatility in the financial markets was exacerbated by traders" uncertainty regarding the strength of their portfolios. This uncertainty caused many to dump shares in a series of "fire sales"; October 10 saw the worst such sale, with the FTSE 100 losing 8.85 per cent of its value in a single day.
Regardless of the massive falls suffered throughout 2008, the year also saw the index"s largest daily gain. The FTSE rose 9.84 per cent on November 24, as the Chancellor made his Pre Budget Report.
2009 looks set to be a dire year in the real economy, but many analysts are holding out hope that the markets will recover. The unprecedented levels of intervention by central banks, in tandem with the falling prices of commodities, could encourage a stronger performance over the course of the next twelve months.
