FTSE 100 shares fall sharply amid US inflation fears

US tech sell-off and report of rising prices for goods leaving China's factories spook stock markets

Fears that central banks will have to abandon their zero-interest rate strategies in the face of mounting inflation prompted steep falls on the world's leading stock markets on Tuesday.

In the UK, the FTSE 100 had its biggest one-day fall since February, closing down 175.69 points at 6947.99 - a drop of 2.47%. The British Airways owner, IAG, was the top faller on the City's main share-price barometer, down 7.4%, with the engineering companies Renishaw, Melrose and Rolls-Royce also among the the worst performers.