FTSE slides 3% on worst day in 18 months as gold tumbles

The FTSE 100 has slumped 3%, gold has dropped 5% and gilt yields have spiked to their highest level in over a year as the prospect of an end to US QE rattles markets.

The FTSE 100 fell deeper into the red this afternoon as US equities sold-off heavily at the open. The Dow and the S&P 500 both shed 1.5% as London's blue chip index slumped 3% to trade below 6,200 for the first time since January. Barring a recovery in the final hour of trading, the loss represents the FTSE 100's worst daily fall since the 4.7% drop seen on 22 September 2011. The slump was not limited to equities: the gold price fell 5.6% to under $1,300, its lowest level since September 2010, with government bond yields spiking in the US and UK. The losses across most asset classe...