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FTSE 100 drops below 7,000 as Unilever and Tesco share prices fall after Marmite row

Jake Cordell
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Man spreading marmite on toast
Marmite fears have spread across the City (Source: Getty)

The FTSE 100 has fallen further from its record high as markets digest some shock weak trade figures from China and the US Federal Reserve looks on course to hike interest rates.

The bluechip index tumbled below 7,000 points to stand down for the week after reaching a record intraday high of 7,129 on Monday.

Miners, financiers and - yes - Marmite-owner Unilever and Marmite-seller Tesco were all down this morning, as the FTSE 100 lost 0.7 per cent to hit 6,973 by mid-morning.

Unilever was off by 2.6 per cent at 3,628p a share, while Tesco also slipped 2.4 per cent to 196p.

Last night, the rate-setting Federal Open Market Committee (FOMC) indicated it was a "close call" on whether to raise rates in September, putting the Fed on course to hike for only the second time since the financial crisis later this year.

The hawkish statement from the world's most important central bank caused government bond yields to jump at the prospect of tighter monetary policy and sent stocks dipping around the world.

Jasper Lawler, analyst at CMC Markets said: "The unwelcome combination of Federal Reserve minutes, signifying a likely US interest rate hike this year and signs of slowing global growth from weak Chinese export data sent UK stocks lower on Thursday."

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