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21 Jun 2013
Flash: Global equities poised for rebound? – Investec
FXstreet.com (New York) - According to Lee McDarby, Corporate Treasury at Investec, “Yesterday marked the worst day for global markets since the crash in Europe in October 2011, with stocks, metals, emerging and credit markets all witnessing their worst falls in almost 20 months.”
Indeed, the main shift has been brought about by concerns that the Federal Reserve in the US may begin to slow down its bond purchase as early as this year, should the economy continue to show signs of improvement. This possibility was confirmed by Fed chairman Ben Bernanke on Wednesday night and has accelerated the fall in equities we have seen over the last week.
Yesterday saw the biggest single drop in the Dow Jones this year as the index fell 2.3%. On the domestic front the FTSE 100 was down just over 3%. However, “overnight the Nikkei ended up 1.7% so today might be slightly more positive for shareholders in the western world when the markets open.” McDarby adds.
Indeed, the main shift has been brought about by concerns that the Federal Reserve in the US may begin to slow down its bond purchase as early as this year, should the economy continue to show signs of improvement. This possibility was confirmed by Fed chairman Ben Bernanke on Wednesday night and has accelerated the fall in equities we have seen over the last week.
Yesterday saw the biggest single drop in the Dow Jones this year as the index fell 2.3%. On the domestic front the FTSE 100 was down just over 3%. However, “overnight the Nikkei ended up 1.7% so today might be slightly more positive for shareholders in the western world when the markets open.” McDarby adds.