FTSE 100 hit by new eurozone bank measures

London stock brokers (file photo) Image copyright AFP

(Close): The FTSE slumped in afternoon trade after being ahead at midday.

New measures announced by ECB boss Mario Draghi to support the region's economy did not meet market expectations.

At close, the FTSE 100 was 145.93 points lower at 6,274.00

Whitbread rose 0.28% after Credit Suisse raised its price target for the hotel and coffee shop operator. Biggest faller was Sports Direct, down 5.4%, as Goldman Sachs cut its target price.

Mining shares weighed on the index after metals prices fell, with BHP Billiton down 3.3%.

Copper prices hit a one-week low and other metal prices fell as the dollar rose following comments from Federal Reserve chair Janet Yellen.

Ms Yellen said the US economy had "recovered substantially" and consumer spending was "particularly solid", raising expectations of a US rate rise this month.

Shares in Ashtead Group fell nearly 5% after Exane BNP Paribas cut its rating on the equipment hire group to "neutral" from "outperform".

In the FTSE 250, Go-Ahead Group shares were up 2.3% after it was announced that London Midland, in which Go-Ahead owns a 65% stake, will continue to run the West Midlands rail franchise until October 2017.

On the currency markets, the pound was up 0.94% against the dollar to $1.5092, but fell 1.67% against the euro to €1.3845.