Update: FTSE closes flat after volatile day

The FTSE closed down 0.25% after yesterday's worst one-day fall in 16 months was followed by a volatile session today.

After initially opening 1% higher, the blue-chip index was down 2% by mid-morning, following a tumultuous session yesterday and in the US overnight. A string of better US data released this afternoon then helped improve sentiment slightly, before US Federal Reserve board member James Bullard suggested the central bank could hold off on ending QE if data required it. The FTSE then rallied into the close, ending down just 0.25% at 6,196. This week's sell-off has been driven by bond markets. Having been closed for Colombus Day on Monday, US bond markets saw wild moves yesterday, the 1...