Global markets retreat as QE taper fears escalate

Japan's Nikkei fell for a second day overnight, while indices around the world also moved lower, as investors pull money out of the market on fears of imminent tapering by the US Fed.

A deal agreed on the US budget this week has heightened fears over an end to QE in the world's largest economy, spooking investors. Overnight Asian markets suffered as a result, with the Nikkei down 1.1% to 15,342 points, after shedding 0.3% on Wednesday. Traders attribute the fall to hedge funds selling down risky assets while waiting for the Federal Reserve to make a decision on tapering. Some market participants expect tapering to be announced before the year end, although the consensus view is that it will start in Q1 next year. The broader Japanese Topix index also suffered...