Thursday, June 20, 2013
Volker Time ? Global sell-off raises turbulence fears
Global sell-off raises turbulence fears
Last updated: June 20, 2013 11:19 pm By Ralph Atkins in London and Michael Mackenzie in New York
An abrupt global sell-off in equities, bonds and commodities on Thursday has fuelled fears that the world is entering a fresh phase of financial turbulence as the US Federal Reserve prepares to ease its large-scale asset purchases.
Emerging markets were among the worst hit in volatile trading after Ben Bernanke, Fed chairman, on Wednesday set out the case for slowing the pace of QE3 this year as the US economy picks up momentum. As the dollar strengthened, gold prices tumbled by as much as 4.8 per cent to a two-and-a-half-year low. Oil fell 3.3 per cent