Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

FTSE Santa Rally short-lived as Fed decision looms

FTSE Santa Rally short-lived as Fed decision looms

European stock indices including Britain’s FTSE let slip of some of yesterday’s strong gains as investors fixated on the US Fed’s decision on the fate of its massive stimulus scheme.

European markets surged yesterday, as investors seemingly start appreciating good economic data on its own merits, rather than worrying about its impact on monetary stimulus.

But Monday’s strength wasn’t sustained this morning, as the FTSE 100 fell 0.5% to 6,490, led lower by mining shares including Anglo American, Vedanta and Fresnillo.

The beginning of the end of the US Federal Reserve’s bond buying scheme remains a worry; angst about the removal of the support is at least partly behind a 2% decline on the FTSE 100 over the past three months.

The Fed’s FOMC panel begins a two day meeting today which could result in the ‘tapering’ back of the $85 billion monthly bond buying scheme. The majority of economists polled by Reuters don’t expect this to happen until March though, under new Fed chief Janet Yellen.

Economic events are taking precedence this week, the last full trading week of 2013, with no UK blue chips due to deliver financial updates.

Among big movers in London though RSA Insurance clawed back some of its recent losses, up 1.6% to 91p as bargain hunters snapped up the hard-hit stock.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Potential US rate rise, cheap oil & the Europe opportunity

Potential US rate rise, cheap oil & the Europe opportunity

This week we analyse the implications of a possible rise in US interest rates, the impact of cheap oil and the European equity opportunity.  

Play Carmignac's Crowl: what QE could mean for Europe

Carmignac's Crowl: what QE could mean for Europe

The ECB is widely expected to finally fire its QE gun this week. Carmignac's Sandra Crowl discusses the implications for the eurozone.

Play Grexit worries, currency wars and a grizzly outlook for 2015?

Grexit worries, currency wars and a grizzly outlook for 2015?

The first Investment Pulse of the year looks at the potential impact of Greece leaving the euro, volatility in currency markets and the UK’s economic prospects.

Your Business: Cover Star Club

Profile: DIY investing is biggest threat to industry, says Whitechurch

Profile: DIY investing is biggest threat to industry, says Whitechurch

The industry is at risk of pushing potential investors down the DIY route unless it does more to make its services accessible says the Whitechurch Securities boss

Wealth Manager on Twitter