Equity markets were down on Wednesday in London. The FTSE 100 lost 0.9 percent to 5,369.7, while the FTSE 250 was down 1 percent to 7,849.1.
Volume on the day, was 3.3 billion shares traded.
At least one analysts blamed the poor performance, the worst since the July 7 terrorist bombings in London, on weakness in US equities markets due to high oil prices and another interest rate hike by the US Federal Reserve.
The banking sector was mixed, with Royal Bank of Scotland down 1.3 percent to £15.76 on rumors that it might be thinking of intruding into the proposed merger between Germany’s HVB and Italy’s UniCredito.
Elsewhere in the sector, however, Paragon gained 2.2 percent to 485½p and Northern Rock was up 0.4 percent to 810½p. In the insurance sector, rumors that Prudential was thinking of acquiring Royal & Sun Alliance sent shares in both companies lower.
RSA fell 0.3 percent to 95½p and Prudential was down by 1.2 percent to 500½p.
Companies that rely heavily on oil products were down on the day as crude oil prices rose again. British Airways lost 1.8 percent to 288¾p, while cruise operator Carnival fell 2.7 percent to £28.85.