Stock markets retreated after confirmation from the US Federal Reserve that it is actively considering a slowdown of its massive bond purchase programme.
Members of the US central bank, according to minutes of their last meeting, agreed that they would likely start reducing the £85bn monthly stimulus if the US job market improved further.
They also weighed the possibility of slowing the purchases even without clear evidence of a strengthening in hiring,
The Fed's bond purchases have been intended to keep long-term borrowing rates low to spur spending and growth but the flood of cheap money has also stoked stock market values, seeing many world indices including the Dow Jones reach record highs.
The minutes also showed that members wrestled with how to assure investors that even after they cut back on the bond buys, the Fed still intends to keep its keep short-term rate near record lows.
At the meeting, members made no changes in interest rate policy but many wanted to better communicate to the public its plans for both slowing its bond purchases and keeping borrowing rates low to encourage spending.
The discussion suggested some members were worried that investors could mistakenly assume a slowdown in bond purchases, which have kept long-term rates low, will be followed by an increase in short-term interest rates.
Stocks fell Wednesday after the minutes indicated the Fed might be closer to scaling back its stimulus.
The Dow closed down 66 points while most Asian markets fell overnight - with weak Chinese manufacturing figures also weighing on sentiment.
There were also further equity falls in Europe on Thursday.
Fed members expect incoming data to show improvement in the job market and would "thus warrant trimming the pace of purchases in coming months," the minutes said but did not specify when that first reduction in bond purchases might occur.
Some participants suggested that at some stage it might be appropriate to begin trimming the bond purchases "before an unambiguous further improvement" in the outlook for the job market. But other Fed officials objected that such a suggestion was premature and wanted more time to assess the impact of the bond purchases.
The Fed meets again in December, but most economists don't expect any changes in the bond programme until March.
That would be Janet Yellen's first meeting as Fed chairman - should the Senate approve her nomination.
Ben Bernanke, the current Fed chairman, will step down in January when his term ends.
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