Fears that the US Federal Reserve will raise interest rates next week dragged down global markets on Monday, with European shares following the lead of Asian markets.

Several Fed members have spoken of the need to raise rates in the next few weeks, with Boston Fed president Eric Rosengren causing stock market chaos on Friday by saying a rate rise is needed to stop the US economy “overheating”.

Just an hour and a half into the trading day the FTSE is down 1.71 percent, dragged by miners such as BHP Billiton and Glencore, both down around 4 percent.

Asian markets largely fell on Monday, with the Hang Seng down 3.36 percent and the Shanghai Composite down 1.85 percent.

Three further Fed officials are expected to speak later today, including the traditionally dovish Lael Brainard, whose comments may well calm the markets. In the past, she has urged the Fed to wait until inflation is closer to the central bank’s target before raising rates.

12/09/2016