Oliver Q
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FTSE 100 slides after Carney hints rate hike looms

U.K. stocks moved lower on Thursday after Bank of England Gov. Mark Carney signaled the central bank is inching closer to raising interest rates.

The FTSE 100 index UKX, -0.21% slumped 1% to end at 6,639.71, closing at the lowest level since mid-August. The pound GBPUSD, -0.08% trimmed its loss to trade at $1.6313, compared with $1.6340 late Wednesday.

European markets also were pulled down by steep losses in U.S. markets.

Carney: The Bank of England boss, speaking in Wales, said the central bank isgetting closer to the first rate hike, but qualified that increases in borrowing costs likely will be gradual and limited. A hike could come as early as next year, economists predict.

Repeating recent comments, Carney also said the timing will depend on the strength of the U.K. economy.

“While there is always uncertainty about the future, you can expect interest rates to begin to increase. We have no preset course, however, the timing will depend on the data,” he said.

Movers: Shares of Hammerson PLC HMSO, +0.09% dropped 3.7% after the retail landlord said it will raise around 400 million pounds ($652.8 million) by issuing new shares to buy 40% of Highcross Shopping Centre in Leicester.

Mining firms declined, as metals prices dropped across the board. Shares of BHP Billiton PLC BLT, -0.23% BHP, -3.59% BHP, -1.81% fell 2.9%, Rio Tinto PLCRIO, -0.11% RIO, -2.22% RIO, -2.26% lost 2.4% and Glencore PLC GLEN, -0.16% dropped 2.1%.

Shares of Ryanair Holdings PLC RY4B, -0.70% picked up 1.2% in Dublin after the budget airliner raised its full-year passenger guidance and said profit would be toward the top end of its previous guidance range.