FTSE 100 falls below 7,000 as markets worldwide tumble on inflation fears

London’s FTSE 100 had its biggest fall since February retreating below 7,000, amid worries that US inflation is set to rise.

The blue-chip FTSE 100 closed a massive 175 points down at 6,948 – a drop of 2.47 per cent. While the domestically focused FTSE 250 also crashed by 530 points.

The British Airways owner, IAG, was the top faller on FTSE 100, down 7.4 per cent, with the engineering companies Renishaw, Melrose and Rolls-Royce also among the worst performers.

On Wall Street, all three indexes pared their losses from session lows with sell-offs in most sectors. The Dow Jones Industrial Average lost over 454 points at 34,288. The S&P 500 shed over 42 points, at 4,145. The Nasdaq Composite shed around 65 points to close at 13,336.

On Wednesday, the impact of weak global cues led shares in the Asia-Pacific region to languish near one-month lows. At noon, Japan’s Nikkei 225 was over 2 per cent down, while Taiwan Index was down over 4 per cent. Hong Kong stocks also tumbled by a hundred points and Shanghai Composite, despite some recovery from day’s lows, remains in the red.

MSCI’s broadest index of Asia-Pacific shares outside Japan eased 0.1 per cent, after tumbling 1.6 per cent on Tuesday for its biggest daily percentage drop since 24 March.

Indian indices also opened lower on Wednesday dragged by worries of inflation. The Sensex was down 223 points at 48,938 while the Nifty lost 47 points to 14,803.

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