BBC News… Share prices slide as ‘perfect storm’ threatens markets

US shares ended largely flat on Thursday, after tracking losses on European and Asian stock markets.

Better-than-expected company earnings and a raft of positive economic data mitigated continuing concerns about global economic growth and the Ebola crisis.

Wall Street’s Dow JonesS&P 500 and Nasdaq indexes declined earlier.

The Dow Jones pared a 206 point decline to end down 24 points, or 0.15%.

The S&P 500 and the Nasdaq both ended slightly up for the day.

Markets welcomed economic data, as well as comments by a US Federal Reserve official, James Bullard, indicating that he believed the US central bank should re-evaluate its decision to end its extraordinary stimulus measures at the end of the month.

The Fed has been buying bonds in an effort to keep long-term interest rates low in a process known as quantitative easing, but that programme is set to end after Fed officials deemed the US economy was no longer in need of extraordinary support.

However, some analysts are hoping the Fed will re-think that decision when it meets later this month, from 28-29 October in Washington, DC.

Most observers, however, noted that Mr Bullard is not a member of the Fed’s rate-setting committee and that a move to continue stimulus measures seemed unlikely.

Increased costs

Meanwhile, the borrowing costs for Greece and Italy rose, and investors looking for a haven pushed gold higher.

In Europe, London’s FTSE 100 closed down 0.25% and the Cac 40 in Paris finished down 0.54%. Frankfurt’s Dax index bucked the trend to edge up 0.13%.

On Wednesday, the FTSE saw its heaviest one-day fall in 16 months. The S&P is down about 8% from a record closing high on 18 September.

Analysts said that a raft of disappointing economic and corporate news had panicked investors.

Recent poor data from China, Germany and the US have heightened worries that the global economic recovery could go into reverse.

SOURCE- http://www.bbc.co.uk/news/business-29644214

Back to Blog

Free Consultation

Your first consultation with us is completely free and you are under no obligation to proceed with us. However, it involves a thorough financial review and a tactical assessment of your various alternatives. We are assured you will leave the meeting with a clear understanding of your options and possible outcomes.

Specialist, Impartial Advice

Bell & Company is not allied to any financial institutions, agencies or outside bodies. This is one of our greatest strengths. It means that, unlike others, we are able to provide impartial advice that is in each client’s best interest and to operate scrupulously on their behalf, free of outside interference.

Chat iconCall us now on 0330 159 5820