Footsie dips below 7,000 as rout goes on
The FTSE 100 fell back below 7,000 points after failing to hold on to early gains in the session.
The index closed down 11.02 points at 6,995.91 despite moving back into positive territory earlier in the day as global stock markets tentatively recovered from a widespread sell-off.
A day earlier, the FTSE 100 suffered its largest one-day drop since June after falling 1.9 per cent.
European stocks experienced a similar reversal following an initial recovery. The French Cac was down 0.14 per cent and the German Dax was down 0.13 per cent.
Investors have been heading for the exit on concerns over rising US bond yields, with America’s massive borrowing looking vulnerable given the costs of servicing the debt.
Markets have also been jittery over mounting trade tensions between the US and China, which could hit global demand.
“Traders are keen to square up their books ahead of the weekend,” said CMC Markets UK market analyst David Madden. “The global equity rout originated in the US, and the moves continue to be US driven, and European dealers are keen to cash in their holdings as Wall Street still has several hours more trading left.”
Shares in Sports Direct closed 1.9 per cent higher at 316p after the company announced it had bought the freehold of the Frasers store in Glasgow for £95 million. The biggest risers on the FTSE 100 were Scottish Mortgage Investment Trust, up 26.6p to
481p, Barratt Developments up 26p to 513.8p, Fresnillo up 37.4p to 876.4p, and Ocado Group
up 33.8p to 813.2p.