Britain’s FTSE 100 hits three-week low as US economic concerns dampen risk sentiment By Reuters

(Reuters) – Britain’s main stock index hit a three-week low on Wednesday amid broad declines after worries about U.S. economic performance weighed on market sentiment ahead of a series of central bank monetary policy decisions at the end of this month.

The blue chip was down 0.7 percent as of 0715 GMT after posting its steepest one-day decline in two weeks on Tuesday. The average market-focused cap fell 0.9 percent, its biggest drop in nearly a month.

Medical equipment and household goods were the most affected sectors, down 2.1% and 1.4% respectively.

Investor sentiment was hit on Tuesday after weak overall U.S. manufacturing data reignited jitters about the strength of the world’s biggest economy that triggered a plunge in global shares in early August and intensified calls for a rate cut Federal Reserve interest rate this month.

While U.S. futures fell after the sharp crunch on Wall Street overnight, Europe also fell 1 percent on the day.

Although September proved to be a weak month, if historical data is anything to go by, a host of factors could dictate the course of market performance. With a September US interest rate cut almost in full, investors will be looking for clues to gauge the size of such a cut.

US jobs data, euro zone producer prices and UK PMI will be the focus of the day, followed by the European Central Bank and Bank of England rate decisions in the coming weeks.

Direct Line Insurance Group fell 2.3 per cent after missing half-year operating profit, while housebuilder Barratt fell 1.2 per cent after full-year results.

Airtel Africa fell almost 6.4% to the bottom of the FTSE 100 after JP Morgan downgraded the stock to ‘Neutral’ from ‘Overweight’.

Insurer and asset manager M&G fell 1.2% after lower operating profit in the first half.