Battening down the hatches: Risk appetite has waned, says AJ Bell

Investors are growing nervous about a possible US economic slump and have been taking steps to protect their portfolios. The US Department of Labor’s weekly jobless claims report yesterday was weaker than expected, while US manufacturing has contracted. Russ Mould, investment director at AJ Bell, said: “Weak economic data from the US spooked the market and reminded investors there are negative reasons why central banks might cut rates, not simply lowering the cost of borrowing because the rate of inflation …