Traders are braced for more volatility as investors absorb more stronger-than -forecast US inflation numbers, that could signal another big hike in interest rates by the Federal Reserve.
Headline CPI for September eased slightly to 8.2% from the previous month’s 8.3% annual rate, but the month-on-month reading of a 0.4% rise was bigger than expected and likely to fuel rate rise expectations ahead of the Fed’s meeting next month.
It’s been another difficult week for markets, with the FTSE 100 index closing last night at an 18-month low after heavy falls for banking and housebuilding stocks.
