News Column

Emerging markets fuel share turmoil

January 28, 2014

By Hugo Duncan, Daily Mail, London

Jan. 28 --Shares in London tumbled yesterday as turmoil in emerging markets and steep falls by blue chip giants Vodafone and BG took their toll. The FTSE 100 index closed 113.08 points down at a five-week low of 6550.66 on another grim day for investors. Stock markets in Europe , Asia and the United States were also on the slide. Investors are nervous about the impact of the US Federal Reserve's decision to start reducing or 'tapering' its programme of quantitative easing. The supply of cheap money in the US in recent years has seen investors plough cash into emerging markets to seek better returns. But with the Fed now starting to turn off the taps there are signs that investors are pulling out of emerging markets and returning cash to the US. Fears of a rout in the emerging markets intensified over the weekend after a collapse in the value of Argentina's currency. There are also concerns over the health of the Chinese economy the second largest in the world behind the US. Sentiment in London took a further hit yesterday as two heavyweight stocks Vodafone and BG were hammered. The late announcement from Royal Bank of Scotland did not help the mood. 'Markets have been chased up and have had a sense of vertigo, which makes the FTSE more vulnerable to the catalyst of an emerging market sell-off,' said Mike Ingram , market analyst at BGC Partners . ___ (c)2014 Daily Mail (London, ) Visit the Daily Mail (London, ) at Distributed by MCT Information Services

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Source: Daily Mail (London, England)

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