(Corrects percentage fall in bullet point)
* FTSE 100 down 0.4 percent
* Unease as Fed expected to scale back stimulus
* Miners rally after positive company news
By Tricia Wright
LONDON, Jan 29 Britain's top share index sank to
its lowest closing level in six weeks on Wednesday, on investor
concern about the effect a further reduction of U.S. monetary
stimulus would have on emerging markets.
Investors have been on edge in recent days as unease about
slowing Chinese growth and the withdrawal of U.S. monetary
stimulus spread from emerging market currencies to the world's
big stock markets.
A huge rate hike by Turkey's central bank to defend its
currency sparked a rally in global stocks earlier in the day.
But both the lira and stock markets pulled back as investor
attention switched to the conclusion of the Fed's two-day policy
meeting later on Wednesday.
"I think the big concern that we saw...last year, when they
mentioned they were going to pull the plug on the bond-buying
programme, that the people that would suffer would be the
emerging markets - I think we're seeing a bit of a spillover on
that," Mark Priest, sales trader at ETX Capital, said.
"I think they're definitely going to start tapering ...
There are rumours flying around (for another reduction of) $10
The FTSE 100 ended down 28.05 points, or 0.4
percent, at 6,544.28 points , its lowest close since Dec. 18,
having swung in a wide range between 6,482-6,645 during the
The index rose 0.3 percent on Tuesday after a sharp drop of
around 4 percent the previous three sessions as emerging market
The mining index limited losses, up 1.4
percent, helped by a 6.1 percent jump to the top of the FTSE 100
by Antofagasta. The Chilean miner posted record
full-year copper production and said its cash costs for this
year would be in line with 2013.
Anglo American, meanwhile, notched a 5.7 percent
rise after announcing a better-than-expected rise in iron ore
production in the fourth quarter.
(Editing by Jon Boyle)