FTSE 100 falls to lowest closing level in 2023 as interest rate fears grip markets

Markets suffer on both sides of Atlantic as Fed signals more rate hikes and recession fears grow in UK

Global financial markets fell sharply on Thursday as investors braced for central banks driving interest rates up further to combat high inflation across the world's leading economies.

Share prices fell on both sides of the Atlantic with the FTSE 100 tumbling by 161 points, or 2.2%, to finish the day at 7,280 - its lowest level since last November - while stocks fell by a similar amount across Europe and by more than 1% in New York.