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Stock markets live: FTSE 100 slips after Asian indexes and Dow see fierce sell-off fuelled by interest rate fears
Stock markets live: Global markets remain volatile as week of drama comes to a close
(about 4 hours later)
London’s FTSE 100 slipped on Friday morning after yet another fierce sell-off across US and Asian stocks, fuelled by concerns that global interest rates may rise faster than previously expected.
US stock markets kicked off Friday's trading session by rising tentatively, recovering somewhat from a week of drama triggered by fears that interest rates might rise faster than previously expected.
By mid-day the UK’s benchmark stock index was down by around 0.6 per cent having already suffered a more than 1 per cent fall on Thursday after the Bank of England held interest rates steady at its regular policy meeting but indicated that they may rise again soon.
The Dow Jones Industrial Average, the S&P 500 and Nasdaq Composite all rose by slightly more than 1 per cent after the opening bell. On Thursday, the Dow recorded its second drop of over 1,000 points in the space of a week.
Overnight China’s main stock index fell by just over 4 per cent after the US’s Dow Jones Industrial Average declined 4.1 per cent on Thursday and the S&P 500 lost 3.7 per cent.
Elsewhere, London’s FTSE 100 slipped on Friday after Asian stocks suffered a fresh tumble too.
As was the case earlier in the week, traders and investors cited fears of higher US interest rates as the trigger for the stock market exodus. Last week, strong jobs data sent US bond yields higher sparking fears of inflation.
The UK's benchmark already suffered a more than 1 per cent fall on Thursday after the Bank of England held interest rates steady at its regular policy meeting but indicated that they may rise again soon.
Global markets have for years been propped up by central bank stimulus, but on Thursday the Bank of England also signalled that it may raise interest rates sooner than previously expected, sending the pound higher and the FTSE 100 sliding.
In Asia, pressure was additionally heaped on Chinese stocks as investors sought to stay liquid ahead of the Lunar New Year holidays. Pressure was also felt to meet rising margin calls, Reuters reported.
