From the Port Phillip Insider (AUS) –
Flash. Crash. Rebound.
You may remember the 2010 ‘flash crash’ on the US market.
On an otherwise quiet May afternoon, stocks suddenly started to fall — fast. So fast that the Dow Jones Industrial fell nearly 1,000 points, or 9%, in minutes.
It was the sharpest one-day fall since the 2008 financial meltdown.
However, unlike the 2008 crash, the ‘flash crash’ literally lasted for only a few minutes.
The market ended up recovering most of the losses that day, and then over the next few days. But tellingly, the market resumed falling for the rest of the month, and wouldn’t reach the pre ‘flash crash’ level again until October that year.
Well, today the market has seen another ‘flash crash’. This time, the pound sterling is (for want of a better word) the victim.