FTSE Loses £46bn To Plunge To 15-Month Low

The FTSE 100 has suffered its biggest one-day fall this year, losing around £46bn in value to close down 2.8% (181 points).

The share index hit the 15-month low as stocks such as commodities and banks saw big drops, amid fears of falling US inflation and weakening global growth.

Pharmaceutical firms also saw falls following AbbVie's decision to reconsider its £34bn ($55bn) takeover bid for Shire.

The plunge began this afternoon as soon as trading opened on Wall Street, where the value of stocks also briefly fell by more than 2%.

Henk Potts, director of global research at Barclays, said: "The stock market is in a fear mode at the moment on worries about global growth conditions and normalisation of US interest rates.

"But if the sell-off continues, it could prove to be a strong entry point into an asset class that we think will continue to outperform."

Shares in drug maker Shire plummeted 21.9% after AbbVie said it was reassessing its £34bn takeover plan following the US government's recent move to curb deals designed to reduce tax.

The FTSE 350 Pharmaceuticals and Biotechnology index fell 6.6% as a result, the index's biggest one-day percentage fall in six years.

John B Smith, senior fund manager at Brown Shipley, said: "It's bad news for the sector, which is struggling to find topline growth and the mergers and acquisitions activity was clearly an area of focus.

"A bid is still possible in the long term, but you are not going to see the higher premiums."

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