The FTSE 100 took another battering on Thursday over fears of a recession and a stronger pound sent shares plummeting.
On Thursday the FTSE 100 lost 80.87 points, or 1.13% and closed at 7,067.01 as multiple factors were weighing heavily on the index.
Energy and mining incurred heavy losses and oil and metal markets slumped over fears demand will dwindle.
The French Cac fell 0.27% and the German Dax was down by 0.7%, pound put the FTSE under pressure as it rose. Retail sales figures gave sterling a boost as they ticked up by 0.2% in July.
David Madden, market analyst at CMC Markets UK said, “The FTSE 100’s disproportionately large exposure to the natural resources sector is the reason why it is underperforming against other major European markets.
“Banks are suffering too, but that isn’t a surprise given the compression in the UK Government bond yields, and bank’s profitability is usually hit in lower interest rate environments.”