- US jobless claims fall to new pandemic low
- FTSE’s 2% drop wipes almost £50bn off the index; other European markets sell off on taper fears
- Fed says it will start reducing the pace of asset purchases this year but interest rate rises still some way off
- Oil prices fall sharply in longest losing streak since February 2020
US stocks have opened lower:
The FTSE 100 in London lost more than 2% today, a decline that wiped almost £50bn off the index. Investors are also fretting about the rise in Covid infections around the world. Hargreaves Lansdown says:
With sentiment getting knocked it is perhaps no surprise to see defensive sectors faring best in a sea of red in the markets today. Shares in utilities and healthcare companies are holding up relatively well, but commodity and energy producers are amongst the worst hit.
If vaccinations can keep the virus from doing its worst, then confidence should improve before too long. Businesses drove a lot of costs out during the pandemic, which bodes well for future profit margins.
