Blue-chip shares still falling over rate rise worry

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psychologically

$1.30 mark.

Shares in pharmaceutical giant drifted down 148p to 4,258p and slipped 25.5p to 2,286p.

Some blue-chip firms, which report in US dollars or euros, can struggle on the FTSE 100 Index when the pound rises because their earnings suffer from a less favourable currency translation.

David Madden, market analyst at CMC Markets UK, said: “The FTSE 100 is down 0.25 per cent as the hawkish comments from the Bank of England Governor yesterday, triggered a round of selling.

“Mark Carney surprised traders by saying that the loose monetary policy could be tightened.

“Only last week Mr Carney

important delivered a very dovish speech, so yesterday’s comments encouraged traders to rethink their long positions, and the jump in the pound also added to the sell-off.” London-listed mining stocks helped soften the fall after a jump in the copper price inspired a rally across the sector.

climbed 6.4p to 290.4p, while and

rose by 16.5p to 17p to 1,029p 804.5p and respectively.

In Europe, Germany’s Dax and the Cac 40 in France both plunged by 1.8 per cent.

On the currency market, the pound was up 0.4 per cent to 1.298 against the US dollar and flat versus the euro at 1.136.

Brent crude extended its gains, rising 0.6 per cent to $47.6 a barrel, with a drop in US weekly oil production calming concerns over rampant oversupply in the market.

In UK stocks, was among the biggest risers despite Culture Secretary Karen Bradley saying she was “minded” to refer Rupert Murdoch’s £11.7 billion swoop for the broadcaster for further scrutiny.

Shares in were up more than three per cent, or 31.5p, to 988p after analysts said it was still positive for both companies because it left the door open for a deal.

The biggest risers on the FTSE 100 Index were up 29.1p to 715.5p, up 31.5p to 988p, up 77p to 3,232.5p and up 6.4p to 290.4p. The biggest fallers on the FTSE 100 Index were

down 90p to 2,285p, down 85p to 2,251p,

down 22.5p to 607.5p

down 148p

and to 4,258p. WALL Street fell sharply yesterday, with the S&P 500 and the Dow industrials suffering their worst daily percentage drops in about six weeks, as a recent decline in technology shares deepened and outweighed strength in bank shares.

The technology sector, which has led the S&P 500’s eight per cent gain for the year, dropped 1.8 per cent, and were the worst-performing major group.

Declines in big tech stocks, including and weighed the most on the benchmark S&P.

Financials and energy were the only sectors in positive territory as investors may have been rotating into groups that have lagged this year.

The Dow Jones Industrial Average fell 167.58 points, or 0.78 per cent, to 21,287.03, the S&P 500 lost 20.99 points, or 0.86 per cent, to 2,419.7 and the Nasdaq Composite dropped 90.06 points, or 1.44 per cent, to 6,144.35. The Nasdaq closed below its 50-day moving average for the first time since April 13, breaking below a key technical support level.

Equity investors also may be concerned about the rise in interest rates globally, as a slew of hawkish comments from central banks signaled the beginning of the end of ultra-loose monetary policy. European stocks also declined.

With the second quarter coming to a close, the market has experienced a volatile few days. Financials were the bright spot, rising 0.7 per cent.