FTSE 100 slides 1.5% on fears of imminent US rate hike

Asian markets also down

The FTSE 100 was down 1.5% in mid-morning trading, echoing Asian markets, on renewed fears the US Federal Reserve will increase interest rates next week.

The UK blue-chip index sat at 6,679 points as of 10.30am, while European markets also took a hit, with the German DAX down 2% at 10,361 points, and the French CAC 40 also down 2%. It follows comments on Friday from Boston Fed president Eric Rosengren, who said a "reasonable case can be made for continuing to pursue a gradual normalization of monetary policy". Rosengren's comments have rattled markets around the world, with many speculating the Fed could raise interest rates as soon as its September meeting next week. Meanwhile, Asian markets also fell overnight on US rate hike fear...