FTSE 100 closes at three-week low

Market trader (file picture) Image copyright Getty Images

(Close): The London market closed at a three-week low on Friday, with financial and mining stocks seeing some of the biggest falls.

The FTSE 100 index fell 1.86% - to end the day at 6,115.76.

Standard Life was the biggest faller - dropping 4.36% - after UBS cut its price target for the shares. Barclays lost 3.78%.

Falling oil and metals prices hit commodity-related stocks, with mining giant BHP Billiton down 3.81%.

Analysts said that uncertainty over the outcome of the UK's referendum on EU membership was also making investors nervous.

"The heightened fears over the impact a Brexit could have in the UK, Europe, and global economy has renewed a wave of jitters that has weighed on global sentiment," said FXTM research analyst Lukman Otunuga.

The fall in the FTSE was echoed in other European markets, with Germany's Dax down 2.52% and France's Cac 40 dropping 2.24%.

Yields on German 10-year bonds - traditionally seen as a safe asset - hit a new record low on Friday. Bond yields fall when the price of bonds rise.

Pound falls

In London, Tesco shares dropped 4.02% as the retailer said it had sold the Giraffe restaurant chain and its majority stake in Turkish business Kipa.

Outside the FTSE 100, shares in brewing firm Fuller Smith & Turner fell 3.44% following its latest results. Adjusted pre-tax profits for the year to 26 March rose 12% to £40.9m.

Shares in womenswear retailer Bonmarche rose 1.96% despite its full-year profits dropping to £9.6m from £12.4m. The company said the trading environment had been "particularly tough".

On the currency markets, the pound fell 0.88% against the dollar to $1.4331 and slid 0.49% against the euro to €1.2708.