Global Stock Markets Fearful of Fed Tapering

Global stock markets and U.S. futures were in the red Wednesday amid new talk that the Federal Reserve may soon begin easing its stimulus measures.
U.S. stock futures were roughly 0.5% weaker ahead of the open, with negative market sentiment blamed on hawkish statements from Chicago Fed president Charles Evans and Atlanta Fed president Dennis Lockhart.

The move downward gathered pace Tuesday as U.S. stocks finished lower, with the Dow Jones industrial average experiencing its largest point and percentage drop since June. Asian markets took up the trend Wednesday — Japan’s Nikkei index declined by 4% as the yen continued to strengthen. The main indexes in China also dropped.
European markets were lower in morning trading. The Bank of England said it wouldn’t raise interest rates until British unemployment falls to 7%, which is unlikely to happen for three years.
Despite the move lower, U.S. stocks have still gained 18% to 21% so far this year.

via CNN

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza