The FTSE 100 fell by more than 26% on Black Monday, October 19, 1987.
London was among the international markets hit after the dramatic decline in U.S. stocks. The FTSE 100, Britain’s leading share index, dropped 26.45% in one session, making the event one of the most severe daily market falls in its history.
The crash moved rapidly around the world because financial markets were increasingly connected. Investors reacted to concerns about valuations, interest rates, currency movements, trade tensions, and the use of computer-assisted trading strategies.
The FTSE 100 is often confused with the FTSE 250. The FTSE 100 represents the largest companies listed in London by market capitalization, while the FTSE 250 covers the next group of companies. Neither index is the same as Germany’s DAX or France’s CAC 40.