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FTSE 100 slides in widespread sell-off | |
(about 3 hours later) | |
(Noon): The London market was down about 1.5% by lunchtime, with financial and mining stocks seeing some of the biggest falls. | |
The FTSE 100 index dropped 91.59 points to 6,140.30, with all shares in the index trading lower. | |
Falling oil and metals prices hit commodity-related stocks, with mining giant BHP Billiton down 2.9%. | |
Barclays fell 3.3%, while Standard Life dropped 2.2% after UBS cut its price target for the shares. | |
Analysts said that uncertainty over the outcome of the UK's referendum on EU membership was also making investors nervous. | |
"Unless polls begin to turn around and show an overwhelming bias towards Remain it is likely that the next two weeks will be characterised by uncertainly and risk aversion," said Joshua Mahony, market analyst at IG. | "Unless polls begin to turn around and show an overwhelming bias towards Remain it is likely that the next two weeks will be characterised by uncertainly and risk aversion," said Joshua Mahony, market analyst at IG. |
The fall in the FTSE was echoed in other European markets, with Germany's Dax down 2% and France's Cac 40 dropping 1.8%. | |
Yields on German 10-year bonds - traditionally seen as a safe asset - hit a record low on Friday. Bond yields fall when the price of bonds rise. | |
Pound falls | |
In London, Tesco shares dropped 2.9% as the retailer said it had sold the Giraffe restaurant chain and its majority stake in Turkish business Kipa. | |
Outside the FTSE 100, shares in brewing firm Fuller Smith & Turner fell 25p to 1050p following its latest results. Adjusted pre-tax profits for the year to 26 March rose 12% to £40.9m. | |
Shares in womenswear retailer Bonmarche rose 0.5p to 128p despite its full-year profits dropping to £9.6m from £12.4m. The company said the trading environment had been "particularly tough". | |
On the currency markets, the pound fell 0.3% against the dollar to $1.4417 and slid 0.1% against the euro to €1.2757. |