UK shares fell on Thursday as investors braced for a likely faster and longer period of interest rate hikes from the U.S. Federal Reserve, with mining names dragging the blue-chip index lower as metal prices dropped in the wake of a stronger dollar.
London's blue-chip FTSE 100 index (.FTSE) fell 0.5% by 0819 GMT, and the mid-cap index (.FTMC) lost 0.6%.
Overnight, Fed Chair Jerome Powell reiterated his stance that the central bank was prepared to hike interest rates and potentially faster, should the U.S. jobs and inflation data warrant.
With the Bank of England's rate-setters still split between a pause or more hikes, Powell's stance saw investors trying to price in the likelihood of the latter, a move typically negative for risk assets.
Rio Tinto (RIO.L) was the biggest drag in the FTSE 100 as the miner traded without dividend eligibility. Falling iron ore and base metal prices aweighed on the broader sector.
Shares of Aviva (AV.L) rose 3.3% after the insurer posted a 35% rise in operating profit, and also announced a buyback programme of 300 million pounds ($355.53 million).
