Volatility returns with a vengence
The FTSE 100 has lost more than 7% since its peak around 6800, with markets undergoing wild swings. The latest Fed meeting showed the world’s most powerful central bank moving towards a reduction in asset purchases. Although the Fed likened any reductions to ‘letting up on the gas pedal’ rather than ‘slamming on the brakes’, markets still took fright, resulting in sharp drops for major indices.
US markets have not suffered as heavily in the recent sell-off as their European counterparts, with the US 500 holding firmly above 1600 during current volatility. The summer is often a weak period for stock markets, and we will see whether indices stay on this track into autumn.
Information as at 6pm 20 June 2013, please see US 500 in market insight for live data.