12th September 2016
It started so well!
Equities had made small gains over the first few days of the week, with the Nasdaq setting record highs on two consecutive days, as soft economic data out of the US suggested the US Federal Reserve policy makers would leave interest rates unchanged during their next meeting on 20-21 September.
However, markets made a swift reversal on Friday after central bankers signalled reluctance to extend stimulus.
Eric Rosengren, the President of the Boston Federal Reserve (Fed), fuelled speculation that the US central bank could be ready to lift interest rates for the first time since December 2015, as he said a case could be made for the Fed to raise rates sooner rather than later and warned against waiting too long.
Meanwhile Mario Draghi, the President of the European Central Bank, downplayed the need for more measures to boost growth.
Ian Copelin, Investment Management Expert*
*Ian Copelin is an Investment Director at Wealth at Work Limited which is a member of the Wealth at Work group of companies