THE FTSE 100 index of companies has suffered its worst weekly fall in a year, wiping tens of billions off the value of Brits’ pension funds and investments.

The 3.8 per cent fall over the week was triggered by fears of a global recession due in large part to Trump’s trade war.

It was broken on Friday as markets globally rose in relief that US jobs data was not worse.

But Russ Mould, investment director at stockbroker AJ Bell, says: “That is the worst week since 8-12 October 2018 and among the worst 5 per cent [of weeks] since the year 2000.”

Each one per cent fall in the blue chip index wipes around £20 billion off the value of the UK’s leading shares, hitting investors including pension funds and individuals.

So a 3.8 per cent decline in the index equates to a £76 billion hit to the UK's top 100 shares.

Significant market falls are always painful. However, these sorts of market movements are part and parcel of investing.

The FTSE 100 has fallen by more than 5 per cent in 17 five day periods in the last five years – but the market has risen steadily over the period as a whole.

“It can be tempting to pull money from the market and sit out the volatility, but the problem is knowing when to buy back in and often people leave it too late and miss out on the bounces and good days,” says Nicholas Hyett of Hargreaves Lansdown.

He advises sitting tight.

Keep calm and carry on

WHEN the market wobbles, it’s generally sensible to sit tight, take a long term view and you will be rewarded for your patience according to investment firm Hargreaves Lansdown.

Russ Mould, investment director at AJ Bell also advises staying calm.

He explains: “The more you start buying and selling, selling and buying, to second-guess what might happen, the more tax and costs you may have to pay. They eat into your nest-egg.”

His other tips include:

• Check out your portfolio and make sure you are happy with everything that is in there. If you have taken a flier on something you would perhaps not have usually bought and it makes you uncomfortable, then think hard about whether you really want to keep it. These are the picks that can do the most damage if markets really turn down.
• Don’t put all of your eggs in one basket. Make sure you have a range of picks so they can protect you, or given you the chance to profit, from a range of different possible situations.

Hargreaves Lansdown adds: “Being out of the market risks missing out on dividends – and with the FTSE 100 expected to yield something like 4.6 per cent over the next 12 months that’s not to be sniffed at.”

In other business news:

OIL BE OFF: The BP boss brought in to turn around the oil giant after the the Deepwater Horizon disaster in the US is stepping down. Bob Dudley, 64, said he would retire as chief executive following the company's annual results in February. New York-born Mr Dudley will be replaced by Bernard Looney, an Irish national who is currently head of oil and gas production.

ON THE SKIDS: Demand for new cars has fallen by 2.5 per cent so far this year as consumers refrain from splashing out. Some 1.86 million new cars were registered between January and September compared with 1.91 million during the same period in 2018, the Society of Motor Manufacturers and Traders (SMMT) said.

CHEESED OFF: Roughly half of Dutch cheese exports to the US will be affected by a 25 per cent tariff Washington has threatened to slap on European food products, the Dutch Trade Ministry said yesterday. The Netherlands exported £71 million worth of cheese to the US last year.

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