Footsie sinks to lowest level in 22 months

The climax of a “bearish” week on the markets saw £16.7 billion wiped off the value of the FTSE 100 following several days of volatility.

Just a handful of London’s top-flight shares avoided the bloodbath, while European counterparts saw a similar decline. The index closed 64.54 points, or 0.92 per cent, lower at 6,939.56.

David Madden, market analyst at CMC Markets UK, said the outlook was “bearish”.

“It has been a brutal week for the markets as the global equity rout has shattered investor confidence. Concerns about higher interest rates in the US, global trade tensions and a potential political fight between Italy and the EU have all played a role in the decline.”

But Fawad Razaqzada, market analyst at Forex.com, said the markets could rebound next week. He said: “We wouldn’t rule out the

possibility of a rebound for stocks next week given the extent of this week’s drop. Clearly, there are some strong companies out there with solid fundamentals which may have fallen below their fair values.”

British Airways owner International Airlines Group (IAG) said profits were hit by higher fuel costs in the third quarter as it continues to grapple with the fallout from a major cyber attack. Shares in the firm closed 1.8p lower at 585.6p.

After a week of volatility, the pound was muted on Friday due to a lack of new developments in the Brexit negotiations, which have become a major catalyst for movements in the currency. The biggest risers on the FTSE 100 included

Randgold, up 218p to 6,416p and Paddy Power,

up 145p to 6,530p.