London close: Earlier gains wiped out as nerves set in lse.co.uk - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from lse.co.uk Daily Mail and Mail on Sunday newspapers.
London stocks completed erased early losses by Thursday lunchtime after the Bank of England chose to keep interest rates unchanged at its latest policy meeting after data showed a surprise slowdown in inflation.
Global stock markets tanked on Thursday, with London's FTSE 100 no exception, after closely watched meetings at the Federal Reserve and Bank of England clouded the outlook for interest rates over the coming months.
Retail stocks were on the rise on Thursday, after results from both JD Sports Fashion and Next impressed the market, while miners were dragged lower by falling metal prices and Ocado suffered from some profit-taking.
London close: Stocks drop on 'higher-for-longer' interest rate outlook lse.co.uk - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from lse.co.uk Daily Mail and Mail on Sunday newspapers.