UK FTSE 100 down 1.18 percent to 6155.81

London Stock ExchangeThe UK FTSE 100 dropped on Thursday by 1.18 percent, or 73.20 points, to 6155.81.

The drop came after the Bank of England voted to maintain the benchmark interest rate at 0.5 percent, cut its growth forecast for the country, and warned of “headwinds” from the Chinese slowdown.

The decision by the central bank sent the sterling to a two-week high, this hit British stocks that have international exposure or rely heavily on exports.

The mining sector was hit hardest, with Glendora down 7.84 percent and BHP Billiton dropping 2.96 percent.

Share prices of Admiral Group, Standard Chartered and Anglo American dropped by 5.95 percent, 4.58 percent, 4.09 percent and 3.49 percent respectively.

Morrison Supermarkets PLC, the UK’s fourth largest supermarket chain, declined 2.84%, or 5 points, closing at 170.90 after it posted a 35 percent drop in first-half profit.

Tesco fell 2.96%, or 5.65 points, closing at 185.55, while J Sainsbury plc was down 1.85%, or 4.50 points.

The FTSE 100 is down about 3.17 percent so far this year.

Elsewhere in the eurozone, the CAC 40 in Paris closed 1.46% lower at 4,596.53 points and Frankfurt’s DAX 30 dropped 0.90% to 10,210.44.

 

CMC Markets UK analyst Jasper Lawler, said:

“The relief rally in European stocks looks to have petered out after three days,”

“This was always the risk, with a lot of remaining uncertainties surrounding China’s economy and government policy,” he added.


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