Markets fall as US Fed backs away from providing additional support
WORLD markets retreated today after America's central bank appeared to back away from providing additional support to the world's biggest economy.
Wall Street's Dow Jones Industrial Average was 0.8pc lower after the minutes of the Federal Reserve's latest meeting showed only two members thought further quantitative easing could become necessary.
The FTSE 100 Index suffered steep losses, falling more than 1pc or 76 points to 5762, as investors expressed surprise at the apparent optimism the Fed has for the path of the US recovery.
The Fed has been encouraged by recent job growth, as well as positive surveys on home sales and manufacturing, which have suggested the US economy is firmly on the mend.
The positive outlook was given more credence as a report from ADP said the private sector added a further 209,000 jobs in March, ahead of expectations of for 200,000.
European markets also finished in a downbeat mood as European Central Bank chief Mario Draghi said the debt crisis and oil prices pose downside risk to region.
The cost of Spanish borrowing also rose today in a bond auction.
By Matthew Sparkes and Amy Wilson
4:50PM BST 04 Apr 2012
DAX was down 3pc in Germany and the CAC lost 2.8pc in Paris.