European markets started the day in the red today as comments from Chicago Fed President Charles Evans that central banks could begin the feared tapering of stimulus measures as soon as next month dealt optimism a devastating blow. Although the Fed admitted that it would wait to see the strength of second-half economic data before making their move, the news that officials have hinted towards tapering this year is clearly concerning investors.
Investors will also be closely eyeing the new Bank of England governor Mark Carney’s statement today and whether Carney provides a retort for Chancellor George Osborne’s request for more ‘’unconventional’ tools to help boost the economy. It seems likely that Carney’s answer to this will consist of an ambiguous response to an ambiguous request and therefore create more uncertainty within the markets. Perhaps officials should be more focused on providing solutions to problems instead of demanding them.