Market report: Citi warns of geopolitical tremors

Investors’ “indifference” to the threats “is unlikely to last”, the US bank has warned

On what was the worst day for the FTSE 100 since March, Citigroup sounded an ominous warning for investors.

Geopolitical risks, including the rise of jihadist extremists in the Middle East and simmering tensions between Russia and the West, are “proliferating”, said analysts at the US bank, while investors’ “indifference” to the threats “is unlikely to last”.

Citi’s timing was apt. Geopolitical factors helped to drive the 97.55-point fall to 6,676.08 suffered by London’s benchmark index, with brokers citing the air strikes in Syria by the US and its allies as a reason for the sell-off, as well as the downing of a Syrian fighter jet by Israel.