Potential for carnage is huge

City bookmaker says trader confidence has hit rock bottom.

Ryan Kneale, market analyst at the firm, says: “We have one bankrupt investment bank, another saved by a last minute buyer and rumours that the world’s largest insurer is in deeper trouble than they would have you believe.

“People have been saying for months that we are ‘through the worst of it’, however that statement seems laughable now as it’s utterly chaotic out there today and who knows what the other banks are hiding.

“If you haven’t put your tin hat on yet, then now is the time to do so, because the potential for carnage is huge!”

Ryan adds: “ clients have been betting heavily against all British banking stocks, as the market savvy clients try to cash in on this latest round of falls.”

And he revealed that the bookmaker has seen a staggering 93% of all bets placed on Barclays this morning backing the share price to fall, indicating that “trader confidence is rock bottom” at the moment.

The Sentiment Index fluctuates between 0 and 100 as financial punters become more bullish or bearish.

It is based on the total monetary value of bets made on the markets to rise versus fall.

A value of 50 can be regarded as ‘normal’, meaning that there are equal amounts of money being wagered on markets to rise and fall.

A value of 100 would mean that 100 per cent of clients were betting on the markets to rise and vice versa for a value of 0.