FTSE 100 Live 5 August: ‘Markets in meltdown’: Index down 2%, Nikkei slides 12%, Bitcoin sinks 11% [Video]

Derren Nathan, head of equity research at Hargreaves Lansdown, said: “US futures suggest markets may fall further before finding a support level. The coming months will be a testing time with economic and political uncertainty weighing on the market, as the US heads towards an increasingly unpredictable election.

“Trying to catch a falling knife can end in tears, but its important not to abandon a long-term lens. Time in the market and diversification have been consistently shown to be the bedrock of successful investing strategies.

“Current conditions will present opportunities to buy shares in quality companies. To mitigate the volatility, it makes sense to feed excess capital into the market slowly, but established companies with dominant market positions have survived and prospered through many cycles. And emerging mega-trends such as artificial intelligence and the potentially enormous healthcare impact of weight-loss drugs haven’t gone away.”