US markets see worst losses for two months on tapering fears

Shares in the US closed sharply lower overnight, with some indices hit by the worst one-day percentage falls since late June, as positive jobs data sparked fears of an earlier move to taper QE than expected.

New claims for jobless benefits fell near a six-year low in the last week, numbers released yesterday afternoon showed, as the US economy continues to get back on its feet. But with the Fed linking any future policy action to the unemployment rate, the drop spooked investors. Coupled with poor results from the US' largest retailer, Wal-Mart, which missed revenue expectations and reported a decline in like-for-like sales, the data was enough to send shares lower as investors bet it could bring forward the Federal Reserve's plan to taper its stimulus package. As a result, all the US'...