Heading into the close the FTSE 100 is down 20 points, while US markets have dropped sharply in early trading.
While Europe is finishing the day off the lows, on Wall Street the outlook remains grim as equities continue to give back ground won earlier in the week. It looks like the seasonal rally has been put back again, with slowing growth figures from around the globe turning investors cautious once again. Growth estimates are being revised down around the globe, and the slow but steady shift away from loose monetary policy continues to make equities less attractive. Investors continue to sell into rallies it seems, a situation that seems set to continue for some time. These bouts of heavy selling usually take place in the latter part of the US session, so today could still get worse if US traders
take the same course this evening.
Next week, despite being the last one before Christmas, sees plenty of data, but all eyes will be on the Fed as it issues its last decision of 2018. The rate hike is less important than what comes with it, and with markets so volatile the Fed’s statement could easily make the end of year rally, or just as easily turn it into another significant leg lower.
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