Shares dived on the FTSE 100 Index today as a surge which promised to take it to an all-time high was cut short following poor economic figures from China.
Comments from Federal Reserve chairman Ben Bernanke that policymakers could slow the pace of their support in the next few months also spooked markets, with the FTSE 100 Index down by 2.1% or 143.5 points to 6,696.8.
Despite the fall, which wiped £36.6billion off the value of shares, the top flight is still up by around 14% this year after investors were driven out of low-yielding government debt and into shares.
The losses were felt across the board in London, with Lloyds Banking Group ending a recent strong run with a fall of 2.3p to 60.6p, Barclays dropping 12.4p to 321.4p and Royal Bank of Scotland easing 12.4p to 337.2p.
Chip designer Arm Holdings was one of the biggest fallers with a decline of 5% or 55p to £9.95.
The utility sector was the most resilient in the FTSE 100 as a flight to safety combined with strong numbers from United Utilities and ongoing bid speculation propped up the sector. United’s shares were 6p higher at 787.5p.
In the FTSE 250 Index, car parts and cycling retailer Halfords fell by nearly 16% as it cut its dividend in order to preserve cash for its £100million turnaround strategy. Shares were down 63p at 333.3p.
Fellow retailer Mothercare was also under pressure, despite an improvement in underlying profits following further growth in its international estate. Shares fell 9p to 354.8p.
The biggest risers on the FTSE 100 included Tate & Lyle, 14p ahead to £8.71, BSkyB up 12.5p to 791.5p and Fresnillo up 4p to £10.80.
The biggest fallers on the FTSE 100 were Aggreko, down £1.04 to £17.58, Anglo American down 83.5p at £15.70 and Standard Chartered falling 77p to £15.39.
Barry Shepherd, of investment manager and financial planning specialist Brewin Dolphin in Aberdeen, highlighted that Plexus gained 3.2% to £2.13 and Optos which added 1.7% to end the day at 133.125p.
Among the day’s fallers, FirstGroup lost 7.8% to 134.3p and Petrofac fell 3.8% to £13.50.
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