Britain's FTSE falters on Fed comments

  • Reuters
  • Stock Market News
Britain's FTSE falters on Fed comments
Credit: © Reuters.

(For a live blog on European stocks, type LIVE/ in an Eikon news window)

* FTSE 100 drops 1.3 pct

* FTSE 250 down 1.4 pct

* Banks and miners worst performing blue-chip stocks

* Builder Kier slips 12 pct

Dec 20 (Reuters) - UK shares fell to their lowest in more than two years on Thursday, joining a wider market selloff, after the U.S. Federal Reserve bank dampened hopes for a milder policy outlook even as the global economy cools.

The FTSE 100 .FTSE was down 1.3 percent at 0850 GMT after hitting its lowest since Aug. 4 2016 in early deals. Only three stocks - Shire SHP.L , Severn Trent SVT.L and British American Tobacco BATS.L - were in positive territory.

The mid-cap index .FTMC was 1.6 percent lower, its weakest since September 2016 partly tugged down by lacklustre response to builder Kier Group 's KIE.L rights issue.

The UK indexes are on track for their worst year since the 2008 financial crisis, and the Fed's tone deepened concerns already augmented by Brexit worries.

Despite calls by U.S. President Donald Trump for the Fed to stop raising interest rates, the central bank on Wednesday stuck by a plan to keep repealing support from an economy it views as strong, sending Wall Street spiraling down.

Banks with a larger international exposure were the biggest drags on the main index, with heavyweight HSBC HSBA.L dipping 2.3 percent as the weaker U.S. dollar weighed.

The Fed news and falling greenback also knocked mining stocks, with Antofagasta ANTO.L , BHP Group BHPB.L and Anglo American AAL.L all down between 2.8 percent and 3.5 percent.

In news-driven moves, mid-cap construction firm Kier Group KIE.L fell as much as 12 percent in early trade before trimming some of the losses as not even half of its shares were bought by shareholders in a fundraising. Its market value has already shrunk 64 percent this year. have dumped shares in the construction sector amid worries about mounting debts after Carillion 's CLLN.L collapse and the impact of Brexit on real estate.

Among smaller moves, AIM-listed electricity and gas supplier Yu Group YU.L slumped 22 percent after it admitted to serious historical failures in an accounting review and said its profit would be hit as a result.

Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

Error: File type not supported

Drop an image here or


Related Articles