Shares down on US stimulus reduction fears; Imperial Tobacco tops FTSE leaderboard

<p>Shares were down this morning across the globe as investors were cautious over how the market would perform if the Federal Reserve begins reducing stimulus. […]</p>

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Shares were down this morning across the globe as investors were cautious over how the market would perform if the Federal Reserve begins reducing stimulus.

The Nikkei fell 2.1%, the FTSE fell 40 points, and the DOW and DAX were also down around 30 points.

Imperial Tobacco was the biggest riser despite reporting a 7% fall in sales. They informed that full year expectations are still on track and shares were up 2%.

At 9.30am UK retail sales figures for July were out; forecast at 0.7% and revealed at 1.1%. This created positive sentiment on the High Street as it adds to indications that the UK economy is recovering.

There was little movement in the market, however, as investors anticipate US figures for clearer ideas about the short term.

At 1.30pm we have the Core CPI which is expected to remain at 0.2% and Unemployment Claims, which are forecast at 334k.

Finally at 3pm there is the Manufacturing Index figure from the Federal Reserve Bank of Philadelphia, so this will be something to keep an eye on.

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