Rolling coverage of the latest economic and financial news, as GameStop shares tumble from last week’s highs
- GameStop tumbled 60% in early trading
- Robinhood eases restrictions on share purchases
- GameStop shares slump as short squeeze eases
Earlier:
- Eurozone heads for double-dip recession
- Silver price falls after Monday’s surge
- Average UK house price fell 0.3% in January, first drop since June
- EY ITEM Club: Expect prices will fall in 2021
Back in London, the FTSE 100 index of blue-chip shares has closed 50 points higher at 6516 points, up 0.8%.
That’s its second day of gains, as stocks recover from last week’s selloff during the short squeeze frenzy (when volatility spiked amid worries that hedge funds would sell assets to cover their losses on shorted stocks).
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Today’s moves suggest that the ‘short squeeze frenzy’ that gripped investors last week is cooling, explains David Madden of CMC Markets.
Gamestop, Blackberry, AMC Entertainment and Bed Bath & Beyond are nursing large losses today. The stock experienced massive rallies last week as they were caught up in the short squeeze frenzy that was carried out by a hoard of retail traders.
It seems the heat has come off the shares.
