Friday, May 24, 2013

Global markets plummet after US Fed threatens to cut emergency cash support to economy

The global market rally crashed to a halt today as the US Federal Reserve suggested it could soon stop throwing so much cash at its economy.

The threat to start winding up the massive US stimulus programme, which has helped fuel stellar market gains across the world, sent London's FTSE 100 index plunging more than 2 per cent from recent 13-year highs for its worst one day fall in a year.

The blue chip index closed 143.48 points, or 2.1 per cent, lower to 6,696.79, retreating from Wednesday's 13-year peak of 6,875.62 and suffering its biggest one-day drop since last May.