The theme of today is ‘Good news is bad news’, as stronger-than-expected new home sales in the US signalled to traders that the US Federal Reserve could taper their bond-buying scheme. Even though the preliminary gross domestic product (GDP) figures in the UK were in line with expectations, traders remained focused on the monetary policy of the US central bank.
In the US the Dow is down 86 points at 15,456, as dealers are more focused on the big picture rather than individual companies.
General Motors announced second-quarter group sales of $1.2 billion, which compares with $1.5 billion for the same period the year previously. The carmaker reported strong US sales which have offset weak sales in the European market. The share price is down 1.6%.