The recent rally on London’s FTSE 100 Index came to a halt today amid fears that US policymakers are getting cold feet over their economy-boosting measures.
Falls were mirrored across Europe and on Wall Street after minutes of the Federal Reserve’s January meeting showed that a number of members were concerned about the cost and risks of carrying out further asset purchases under its quantitative easing programme.
With investors shocked by the report, the FTSE 100 closed 1.6% lower, down 103.8 points to 6,291.5.
Miners bore the brunt of the equities sell-off, with Evraz down 14p to 266.7p and Vedanta Resources 51p lower at £12.06.
Defence giant BAE Systems was one of only a handful of stocks on the blue-chip risers board after it announced the start of a three-year share buyback programme alongside the publication of its full-year results. Shares were 4% higher, up 13.7p at 345.9p.
Outside the top flight, retailer Sports Direct International jumped 6% or 24p to 440p after it said it was “certain” to meet its earnings target for the year to April of £270million. This followed another strong quarter of trading, with sales from its 400-strong retail estate up 21% to £495.8million.
The biggest FTSE 100 risers included Pearson 17p ahead at £12.22, RSA Insurance 1p higher at 118p and Sainsbury’s up 2.7p at 337.8p.
Among the biggest FTSE 100 fallers were CRH off 68p to £13.36 and Barclays 13.5p lower at 306.5p.
Stuart Lamont, of investment manager and financial planning specialist Brewin Dolphin in Aberdeen, noted Parkmead Group added 1.8% to 14.375p and Eland Oil & Gas was up 0.1% at 127.625p.
Among the day’s fallers Optos dropped 5.6% to 196.625p, FirstGroup gave up 4.2% to 180p and Aberdeen Asset Management fell 3.8% to 425.3p.