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FTSE stuck as central bankers hold sway
by Chris Marshall on Sep 24, 2013 at 09:50
Britain’s FTSE 100 and other European markets failed to take off on Tuesday morning, as central bankers again hogged the market limelight.
Comments from officials from the US Federal Reserve, European Central Bank and Bank of England in the past two days have subsumed economic data reports, as investors fixate on central bank policy.
Among them was senior Fed official William Dudley, who defended the decision not to begin scaling back US stimulus in September, expressing concerns about the strength of the labour market. Fed officials have been giving conflicting messages on policy, creating uncertainty in markets.
In Europe, ECB chief Mario Draghi yesterday pledged more aid if needed, specifically to ‘use any instrument, including another LTRO if needed, to maintain short-term money market rates at a level which is warranted by our assessment of inflation in the medium-term’.
Having declined after Draghi's comments, the euro firmed 0.1% against the dollar after Germany's Ifo survey of business sentiment increased slightly in September to 107.7, from 107.6 in August. The reading was below economists’ forecasts, however.
The pound slipped back 0.18% to $1.6010 as Ben Broadbent, one of the Bank of England’s policymakers, expressed uncertainty about the strength of the UK economic recovery.
The FTSE 100 was unmoved at 6,562. The benchmark index is down 1% over the past five days, but remains up 7% over the past three months.
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