FTSE sinks 2% as US markets retreat

The FTSE 100 has dropped 2% as diminished expectations of more stimulus from the US Federal Reserve knock investor confidence.

The UK's leading blue chip index has now given up all of Monday's near 2% gain, adding to yesterday's 0.6% fall by shedding a further 120 points today to stand at 5,718. Leading the index down are gold miners Fresnillo and Polymetal, hit by a further fall in the gold spot price. The precious metal has fallen 1% to $1,618, its lowest level since the first week of 2012. Risk assets have also sold off after minutes from the Federal Reserve's 13 March meeting surprised markets in their more hawkish tone, appearing to rule out more quantitative easing in the near future. France's Cac 40...