Economic slowdown fears pull FTSE 100 lower

The blue-chip FTSE 100 index dropped 0.6% by 0704 GMT, on track to snap a three-day gaining streak, while the domestically focussed mid-cap FTSE 250 fell 0.8%. Industrial metal and mining stocks were among the worst hit, down 1.3%, as copper prices slipped after downbeat U.S. consumer confidence data and prospects of rapid rate hikes to control a surge in inflation fanned fears of a global economic slowdown.

UK's top share index slipped from two-week highs on Wednesday, echoing sharp losses in Asian equities and Wall Street overnight, as weak U.S. consumer confidence data revived fears about a recession in the world's largest economy. The blue-chip FTSE 100 index dropped 0.6% by 0704 GMT, on track to snap a three-day gaining streak, while the domestically focussed mid-cap FTSE 250 fell 0.8%.

Industrial metal and mining stocks were among the worst hit, down 1.3%, as copper prices slipped after downbeat U.S. consumer confidence data and prospects of rapid rate hikes to control a surge in inflation fanned fears of a global economic slowdown. Miner Anglo American and spirits maker Diageo fell 2.8% and 2.4%, respectively, after Deutsche Bank cut ratings for both companies.

However, oil majors such as Shell and BP edged higher even as crude prices remained under pressure.