FTSE slumps as risk-off mood returns following US falls

The FTSE 100 is on course for its worst day in four months as nervous investors begin August in cautious mode.

After better year-to-date performance for UK-listed miners, investors reverted to blanket 'risk-off' mode this morning. Rio Tinto and Glencore were among the largest fallers, not helped by a ratings downgrade for the latter by Bank of America Merrill Lynch on valuation grounds. Asset managers, under pressure for most of this week, also continued to struggle: Schroders, for example, was down 3.3% at £23.12. RBS was also a faller after posting interim results this morning, dropping 2.4% to 346p. With just six stocks in the black, by mid-morning the FTSE was 1.4% lower at 6,640, on co...