Wealth Manager - the site for professional investment managers

Register for full access to Citywire’s Fund Manager database, news and analysis. 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 Inside ETFs: Why the US bull-run still has legs

Inside ETFs: Why the US bull-run still has legs

Global equities suffered a sharp sell-off in the third quarter but exchange traded fund investors are continuing to back the US to outperform in 2015

Play Paul Niven: I won't rip up the Foreign & Colonial Trust history book

Paul Niven: I won't rip up the Foreign & Colonial Trust history book

The newly appointed manager of the Foreign & Colonial trust talks about his plans for UK's oldest investment company.

Play Dangerous daisy chains, Black Friday blues and Uber valuations

Dangerous daisy chains, Black Friday blues and Uber valuations

This week’s Investment Pulse looks at the domino effect in European banks, America’s disappointing Black Friday and how much Uber is really worth.

Your Business: Cover Star Club

Manchester wealth firm hires Coutts director for London launch

Manchester wealth firm hires Coutts director for London launch

Former Coutts director Tony Robinson has joined Chartered Wealth Management to head the company’s newly opened London office.

Wealth Manager on Twitter