By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- Most U.K. stocks edge lower on Thursday,
with oil firms and drug makers leading the decline, after rate-hike
signals from U.S. Fed Chairwoman Janet Yellen rattled financial
markets globally.
The FTSE 100 index slid 1.1% to 6,502.97, setting it on track
for the lowest close since early February.
The loss in London tracked a wider downbeat sentiment in Europe
after Fed chief Yellen late Wednesday indicated a rate hike could
come as soon as the spring of 2015. Speaking after the central
bank's latest policy announcement, Yellen said the Fed may increase
rates about six months after the asset-purchase tapering is done.
The taper of the Fed's bond purchases is expected to end in October
or November, putting the potential first rate hike on course for
April or May of 2015.
The comments sent the greenback higher (DXY), which in turn
added pressure on dollar-denominated commodities such as oil and
metals. Energy firms in London felt the pinch, with shares of BG
Group PLC down 2%, BP PLC (BP) off 1.4% and Royal Dutch Shell PLC
(RDSB) 1.5% lower.
Mining firms were also bruised by weaker metals prices. Shares
of Randgold Resources Ltd. gave up 2.2%, Rio Tinto PLC (RIO) erased
1% and BHP Billiton PLC (BHP) slipped 0.7%.
Betting firms took a beating in London as well, extending
declines from Wednesday when the U.K. government said it would
raise taxes on betting terminals. Shares of William Hill PLC
dropped 2.9%, while Ladbrokes PLC slid 4.9% outside the main
benchmark.
GlaxoSmithKline PLC (GSK) fell 2% after the drug maker said its
cancer drug MAGE-A3 suffered a setback and didn't meet its primary
goal in a trial.
Outside the main index, shares of Mulberry Group PLC advanced 2%
after the luxury-goods firm said Chief Executive Bruno Guillon will
leave the helm with immediate effect. The resignation comes after
the company issued a profit warning earlier this year.
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