Federal Reserve

A surprise delay in the US Federal Reserve's plans to wind down its QE programme may continue into 2014, fund managers have suggested.

UK Equities

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.

The FTSE has jumped as much as 1.5% after the US Federal Reserve came yesterday indicated it has no plans to cut back on its quantitative easing programme at present.

The prospect of today's tapering announcement from the US Federal Reserve kept action in the FTSE 100 to a minimum in morning trading.

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

Fixed income managers have taken profits on their short positions in US treasuries in the expectation this week could mark the start of a short-term rally.

LEHMANS SPECIAL

The FTSE 100 has jumped almost 1% after former US Treasury secretary Larry Summers withdrew his candidacy to replace Federal Reserve chair Ben Bernanke next year.

Markets across Asia started the week brightly as traders bet the withdrawal of Fed chair candidate Larry Summers' could slow the US' curtailment of quantitative easing.