The FTSE 100 fell sharply at the start of trading as weak labour market data weighed on sentiment. The UK’s flagship index slid 0.8pc at the open to 10,116.14 after unemployment remained at a four-year high and pay growth slowed markedly.
The more domestically focused FTSE 250 also opened lower, down 0.5pc at 23,008.53.
US equity markets, which were closed on Monday for Martin Luther King Jr. Day, were set for heavy losses when Wall Street reopened. Futures indicated the Dow Jones Industrial Average could fall by more than 700 points, or 1.4pc, while the S&P 500 was expected to drop over 100 points, or 1.6pc. The Nasdaq Composite was seen tumbling 466 points, also around 1.6pc.
The dollar weakened, falling 0.8pc against a basket of major currencies.
Safe-haven assets rallied, with gold climbing 1.3pc to $4,728 an ounce. Silver touched a fresh record of $94.77 before easing back to $94.23, down 0.5pc on the day.
In Asia, Japan’s Nikkei 225 fell 1.1pc, while European markets were also under pressure, down about 1.1pc across the board. The FTSE 100 was last down 1.1pc, or 111 points, at 10,083.
