It has been some time since the impending tapering of the US quantitative easing policy has not been at the forefront of market moves, but today it has certainly been in the background.
The images that have come out of Syria in the last few days have dramatically increased the chances that the west will intervene. The UK government has recalled parliament in order to discuss and possibly vote on any actions to be taken. The noises coming out of the US are even stronger and they will undoubtedly be pushing for some unified action to be taken.
The knock-on effect has been a flight to security, with gold charging up to highs from June and showing some real determination to challenge the downward trend that it has been stuck in. Crude oil earlier hit April highs and with the Egyptian crisis still far from resolved, has more than a chance of pushing higher.
Lurking in the back is the re-emergence of the US debt ceiling, which at its current rate is due to hit its limit around mid-October. Though not the driving force behind today’s falls, it's another negative to add to a growing list.