The 30-company bellwether dropped 74.70 points, or 1.17 percent, to close at 6,290.27, while the broader all-shares index shed 26.39 points to settle at 3,383.41.
That has led to a re-evaluation of the outlook for monetary policy, with optimism that July’s rate hike could be the last giving way to bets on one more before the end of the year. Data on Thursday did little to dissuade investors, with unemployment benefit applications falling the most since last month, indicating the labour market remains in rude health.“This week’s data hasn’t given them any reason to let their guard down,” said Mike Loewengart of Morgan Stanley Global Investment Office.
All three main indexes on Wall Street sank for a third straight session on Thursday, while London, Paris and Frankfurt also suffered heavy losses. The country’s property crisis was also back in the headlines, with big-name and massively indebted firms in danger of going under.