FTSE 100 set to recover as Bitcoin rebounds

by Jonathan Adams
FTSE 100

The London market closed down 84 points on Wednesday, tumbling nearly 2% at one point

The FTSE 100 was today set to claw back most of the losses made in yesterday’s sharp fall.

In a rough session that at one point saw the index tumble nearly 2%, the London market closed down 84 points on Wednesday.

Today it was set to rally 63 points on the opening to move back to the 7000 mark.

Inflation worries had been a key factor behind yesterday’s tumble but, as with so many of the recent down-days on the markets, no sooner have the sellers done their worse than bargain hunters move in and a recovery takes place.

US tech shares staged something of a rebound after European markets closed, which should help boost confidence in today’s session.

Asian shares were mixed this morning, with the Hang Seng in Hong Kong 0.7% lower and the Nikkei 0.26% higher.

One reason to hope for a better day was that the big sell-off in Bitcoin and other crypto currencies yesterday appeared to be taking a breather. Bitcoin rose nearly 1% at $39,326 this morning.

While it’s impossible to know why cryptos do what they do, some analysts were putting yesterday’s slide down to warnings from China that regulators may get more interventionist. Authorities in the giant trading nation appear to be looking to become more activist both in crypto and commodities, which also fell sharply yesterday, CMC Markets noted.

Minutes from the US Federal Reserve’s last meeting on monetary policy showed several members were leaning towards taking action to stop inflation running away. Investors are now moving towards predictions that it will begin tapering off the current levels of quantitative easing bond buying in the Autumn.



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