Home Business NewsBusiness Fed tapering talk prompts FTSE slump

Fed tapering talk prompts FTSE slump

by LLB Editor
19th Aug 21 10:01 am

The FTSE 100 took a bath on Thursday morning, dragged lower by weakness in the resources sector amid fears the US Federal Reserve might be about to pull the rug from under the market by tapering its support for the economy early, says AJ Bell investment director Russ Mould.

“A particularly dramatic fall in Anglo American shares reflects the fact they are trading without the rights to a very generous dividend payment.

“But the Fed minutes, showing a split between members over when to start scaling back financial stimulus, the continuing spread globally for the Delta variant, weakness in the Chinese economy and the turmoil in Afghanistan add up to a cocktail of worries which are dogging investor sentiment.

“The question now is whether a volatile week is the prelude to the kind of late summer sell-off we have seen in previous years or if the market can regain its poise moving into the autumn.

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