Afternoon markets: Draghi comments spark FTSE drop

The FTSE 100 index slipped below the 5,500 level at the close of trading, as European Central Bank president Mario Draghi failed to inspire investors.

As the European Union leaders’ summit reached the halfway point, the blue chip index slipped as Draghi revealed that inflation is likely to stay above 2% for several months.

The biggest faller was Lloyds Banking Group, which dropped 7.4% to 25.08p. Essar Energy fell 6.5% to 226.1p, while Royal Bank of Scotland Group slipped 5.5% to 20.92p.

Engineer IMI dropped 4.5% to 737p, as Xstrata fell 4.4% to 990p.

The biggest riser was British American Tobacco, which increased by 1.5% to 3,015p. Supermarket chain Morrisons added 0.9% to its share price, up to 318.2p. BT and GlaxoSmithKline both increased by 0.8% to 1,440p and 2,369p, respectively.

To receive more relevant articles like this one, why not sign up to our briefings and breaking alerts by clicking here.