Global markets drop on Fed announcement

<p>Markets dropped following an announcement by the Federal Reserve.</p>

Markets around the world are down today (June 20th) on the back of comments made by chairman of the US Federal Reserve Ben Bernanke last night.

Mr Bernanke confirmed the US asset purchasing programme could be reduced next year and wound down in 2014, a move that has affected global stock markets.

At 16:13 BST, the FTSE 100 is down by 2.79 per cent, while the Dax and the Cac 40 have both lost more than three per cent of their value over the course of the day's trading.

The Nikkei, which has already closed, was down by 1.7 per cent, while the Dow Jones and the Nasdaq in the US have each dropped by between one and 1.5 per cent.

According to a report by BBC News, gold prices also fell on the back of the comments made by Mr Bernanke last night.

The value of the commodity plunged to new two-and-a-half year lows, while the US dollar strengthened against other major currencies.

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