It's Groundhog Day for investors as Fed tremors continue to scare markets

European markets are in the red as investors fret over the prospect of reduced asset purchases by the Federal Reserve.

Mike van Dulken, head of research at Accendo Markets says that those Fed tapering fears are "ruling the roost".

A surprise improvement in last Friday's unemployment data was originally greeted by rallies in US equities, but now traders are worried that the improving economic picture will see the Fed withdraw monetary support from the economy.

Those tapering tremors saw the S&P 500 shed over 20 points yesterday, with the Dow falling by close to 130 points. That weakness extended into the Asian trading session, with the Nikkei and Sensex both slipping by over 1.1 per cent.

US jobs data released at 1.30pm will give some indication as to more recent movements in the labour market. Initial jobless claims are expected to rise to 320,000.