Stock market turmoil: All eyes on the Dow after $4tn wiped off global shares – business live

FTSE 100 hit a one-year low this morning, after the Dow suffered its biggest fall in six years1.45pm GMT: FTSE 100 down 140 points US stock market expected to keep fallingEuropean stocks down 2% after early sell off$4trn wiped off stocks since last weekFTSE 100 hits one-year lowWhy are markets falling?As it happened: Dow plunges 1,175 points, Asia follows… 1.39pm GMT Take a deep breath, stock market traders. The opening of Wall Street is 50 minutes away, and heavy falls look likely:Dow Futures down 313 points, pointing to nearly 700 point drop at the open pic.twitter.com/sseGLPidiJ 1.38pm GMT Guy Foster, head of research at wealth manager Brewin Dolphin, says the financial markets are adjusting to a new world where central bankers aren’t propping assets up through loose monetary policy.He writes:Interest rates are rising at a time when the economy needs money for the increased corporate investment activity which is taking place. That means there won’t be the constant flow of money into the equity market which has been supporting prices over the last couple of years.As I said before the year ended, the real challenge for investors after an environment of very low volatility is that they may be unnerved as it “normalises”. More volatility means more opportunity for active investors with strong nerves. We see the recent sell off as validating rather than challenging that assessment” Continue reading…
Via: Stock market turmoil: All eyes on the Dow after tn wiped off global shares – business live