FTSE 100 flirts with losses for year after tough trading

The FTSE 100 index’s sharp fall of more than 2 per cent yesterday means it has risen just more than 0.1 per cent during 2014.

Commentators linked the market falls to news in China of measures to tighten the availability of credit to companies as well as local authorities.

Besides the FTSE 100’s 2.1 per cent fall to 6,529, the S&P 500 index was down 0.2 per cent while the FTSE Eurofirst 300 was down 2.3 per cent, meaning it reached 1,363.

Overnight, the Shanghai Composite index has staged a partial recovery after losing 5.4 per cent yesterday.