FTSE 100 hits two-year closing low as 'Santa Rally' turns to rout – business live

Rolling coverage of the final trading day before Christmas, as Britain’s FTSE 100 loses £76bn during December selloff

  • Latest: The FTSE 100 has hit its lowest close since September 2016
  • No Santa Rally this year
  • Mnuchin is arranging a crisis team to reassure markets
  • Reports Trump might fire Powell spook investors

12.53pm GMT

Newsflash: Britain’s blue-chip stock index has closed at its lowest level in over two years, as the stock market selloff refuses to end.

The FTSE 100 has ended the shortened Christmas Eve trading session at 6685 points, down 35 points or 0.5%.

The statement appeared to be an attempt by the administration to calm nerves after a volatile week for traders and media reports that President Donald Trump was contemplating firing Federal Reserve chairman Jay Powell.

Win Thin, global head of currency strategy at Brown Brothers Harriman, warned that among traders, “sentiment is so negative right now that markets will assume the worst” about any suggestion that Mr Trump could seek to remove Mr Powell.

12.26pm GMT

Shares are coming under more pressure in London, with just a few minutes trading left today.

The FTSE 100 is now down 0.75%, or 51 points, as traders hear that Wall Street may open lower….

Dow futures – quick drop 130 points – the same old story even Christmas eve

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