Britain's FTSE knocked

Comment on this story
FSTETrader1234 Reuters. A trader monitors the screen on a trading floor in London.

London - Britain's top share index fell on Thursday on fears the US Federal Reserve could prematurely wind down its asset purchase programme, a strong contributor to the recent equity market rally.

The FTSE 100 was down 35.06 points, or 0.6 percent, at 6,360.31 by 10:06 SA time, having hit a new five-year closing peak of 6,395.37 on Wednesday, led lower by mining stocks and banks.

“US liquidity concerns following the Fed minutes looks like the pin which will burst the recent bubble in equities,” Mike McCudden, head of derivatives at Interactive Investor, said.

“We will see in early trade if investors still have the appetite to buy on the dips but regardless, volatility will reign in the coming sessions.”

Minutes of the Fed policy meeting published late on Wednesday showed a number of officials think the central bank might have to slow or stop buying bonds. - Reuters

sign up

Comment Guidelines

  1. Please read our comment guidelines.
  2. Login and register, if you haven’ t already.
  3. Write your comment in the block below and click (Post As)
  4. Has a comment offended you? Hover your mouse over the comment and wait until a small triangle appears on the right-hand side. Click triangle () and select "Flag as inappropriate". Our moderators will take action if need be.

  5. Verified email addresses: All users on Independent Media news sites are now required to have a verified email address before being allowed to comment on articles. You are only required to verify your email address once to have full access to commenting on articles. For more information please read our comment guidelines