The FTSE 100 Index was poised for its biggest loss since the days following the European Union referendum as concerns over Hillary Clinton’s health and a potential interest rate hike by the US Federal Reserve spooked investors.
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The FTSE 100 Index was nearing six-week lows to levels not seen since early August.
Meanwhile, the pound struggled to find a clear direction, trading almost flat at 1.327 against the United States dollar, and 0.19% lower at 1.18 against the euro.
Spreadex financial analyst Connor Campbell said: “Without anything to distract them the markets are still looking pretty bloody, with investors continuing to wallow in their pre-Fed jitter”.
Political risk also took its toll on global stocks after it was announced that Democratic presidential nominee Mrs Clinton has been diagnosed with pneumonia just weeks ahead of the USA election.
Stocks dropped globally on Sunday after Mrs Clinton was seen stumbling as she left a 9/11 memorial ceremony in NY.
The panic has largely been triggered by fears the United States could raise interest rates in September.
European stock markets are trading sharply lower on Monday as investor sentiment was rattled by concerns that the U.S. Federal Reserve could be considering an imminent interest rate hike.
ABF said the fashion chain had suffered under bad weather and is expected to post a 2% slide in annual like-for-like sales – the first time in 16 years Primark has posted a negative number.
Meanwhile, a drop in commodity prices took its toll on UK-listed mining stocks.
The biggest fallers in the FTSE 100 Index were Associated British Foods (-316p to 2,840p), Marks & Spencer Group (-18.7p to 325p), Anglo American (-39.5p to 807.1p), BHP Billiton (-47p to 970.5p) and Lloyds Banking Group (-2.5p to 56.8p). West Texas Intermediate was down 1.9% at $45.03 a barrel and Brent crude was 1.7% weaker at $47.20.
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Shares in Barclays were also dragged lower after Investec downgraded its outlook for the company, saying the lender’s recovery was “distant and uncertain”. It comes after Jefferies upgraded its view on AstraZeneca, which is developing a new drug meant to treat lung cancer.
