Now US jitters wipe £36bn off FTSE shares

MORE than £3 billion was wiped off the value of Britain’s top firms yesterday – taking losses since the summer to £234billion.

On another painful day for savers with money in the stock market, the FTSE 100 fell 1.9 per cent to its lowest level in six months.

The losses were repeated around the world. In America, the Dow Jones index swung wildly following a panicky performance on Wednesday when it shed 832 points in the third worst day on record.

Markets in Hong Kong and Tokyo both closed sharply lower yesterday morning. Investors are fretting about rising US interest rates as the Federal Reserve seeks to combat inflation. It is feared this could push up the cost of borrowing worldwide and make it harder for companies to earn money.

Jasper Lawler, of London Capital Group, said: ‘The bloodbath for global equities comes as investors adjust to a world of higher US interest rates.’

The rush to increase rates signals the end of the easy money which kept the world economy on life support after the financial crisis a decade ago.

US President Donald Trump issued an unprecedented attack on his own central bank for the rate rises, calling the Fed ‘crazy’.