Investing
FTSE hits seven-week low as Japan stimulus miss rattles markets
A lack of further easing from the Japanese authorities coupled with fears over QE in Europe rattled markets today, sending the FTSE 100 to a seven-week low.
In an announcement which disappointed investors, Bank of Japan Governor Haruhiko Kuroda said the central bank will consider fresh steps to calm markets if borrowing costs spike again in the future, but held off on new measures, arguing bond markets had stabilised.
Elsewhere in Europe, sentiment was further affected by the European Central Bank, which is today defending its bond-buying programme in a German court.
Bond yields across Europe edged higher as a result, while equity markets across Europe and the UK fell.
The FTSE 100 had dropped 1.7% lower by 13:30, hovering at around the 6,300 mark. During the session it dropped through the 6,300 mark for the first time since 22 April.
The German Dax index also fell 1.7%, with the French Cac 40 taking a 2% hit, after Asian markets – including the Nikkei 225 – saw losses overnight.
