Markets slide on stimulus fears as UK unemployment rate falls

The FTSE 100 and other indices across the world were in the doldrums today as the latest round of positive economic data sparked fears of a sooner than expected end to stimulus programmes.

Investors who have enjoyed a major recovery in the value of equities are now eyeing positive data as a sign banks could curtail stimulus programmes in the near future. UK unemployment dropped to 7.6% in the three months to September, approaching the 7% target highlighted by Bank of England governor Mark Carney as the point which may trigger a rise in interest rates. The drop in the unemployment rate, coupled with comments from Carney at his first inflation report press conference, pushed down an already weaker FTSE 100 by late morning, with the index off 72 points or 1.1%, at 6,654. ...