quantitative-easing

Japan focus

The US dollar has hit multi-year highs against a basket of currencies as investors take a hawkish view of the latest finely-balanced set of communications from the Federal Reserve.

Bond managers have said the European Central Bank's move to cut rates and start buying asset-backed securities in Europe means it is now unlikely to implement a mainstream QE programme.

Angela Merkel's government is the latest to back the US Federal Reserve's withdrawal of monetary stimulus despite continuing emerging market turmoil, reports have suggested.

The Federal Reserve saw jobs growth in the US as the trigger to begin tapering QE, and has raised its economic growth forecast, the minutes of the last Federal Open Market Committee (FOMC) meeting reveal.

US markets soared to new all-time highs on Wednesday as the Federal Reserve made a surprise early move to gradually scale back quantitative easing.

It is still the main topic in town. We have had some wobbles in markets as investors have taken fright at the idea of fewer new dollars around.

Janet Yellen has defended the Federal Reserve's quantitative easing programme in her first appearance before Congress.

The Federal Reserve has been accused of ‘making policy on the fly' after it opted not to taper its quantitative easing programme at its monthly meeting yesterday.

Managers have suggested growth stocks - many investors' favoured plays for a post-QE era - may struggle once the Fed slows its asset purchase programme.