London - Britain's top share index fell on Thursday on fears the US Federal Reserve could prematurely wind down its asset purchase programme, a strong contributor to the recent equity market rally.
The FTSE 100 was down 35.06 points, or 0.6 percent, at 6,360.31 by 10:06 SA time, having hit a new five-year closing peak of 6,395.37 on Wednesday, led lower by mining stocks and banks.
“US liquidity concerns following the Fed minutes looks like the pin which will burst the recent bubble in equities,” Mike McCudden, head of derivatives at Interactive Investor, said.
“We will see in early trade if investors still have the appetite to buy on the dips but regardless, volatility will reign in the coming sessions.”
Minutes of the Fed policy meeting published late on Wednesday showed a number of officials think the central bank might have to slow or stop buying bonds. - Reuters