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.
In morning trading, the UK’s benchmark stock index fell by around 0.5 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.
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.
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.
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.
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