Markets tumble as Fed signals imminent end to QE

Markets across the globe tumbled overnight after the US Federal Reserve announced it may slow down asset purchases by the end of the year.

On Wednesday the Fed's chairman Ben Bernanke said the Bank could taper its QE programme by the end of 2013 and wind it down completely by mid-2014 if the US economy continues to improve in line with expectations. Currently the Bank is buying $85bn (£54bn) worth of bonds each month and interest rates are at historic lows between 0% and 0.25%, but the chairman foresees an improvement in the economy, which would trigger a change in policy. His speech triggered a sharp sell-off in equity markets, with the S&P 500 experiencing its biggest sell off in two weeks, down 1.4%, while the Dow Jon...