The benchmark FTSE 100 has so far lost about 20 points to 4,548 after UK stocks fell on comments made by Federal Reserve Chairman Alan Greenspan yesterday, suggesting US interest rates may rise sooner than expected.
Greenspan said the threat of deflation is "no longer an issue" adding that banks can adjust to higher borrowing costs, which would make borrowing more expensive.
Rio Tinto lost 36p to 1,305p after the miner said bad weather had affected iron-ore production, which in turn caused quarterly output of the material to fall for the first time in a year.
Reuters fell 10p to 405p despite the company reporting first quarter revenue fell less than the average forecast.
In Asia, Tokyo's Nikkei 225 index lost 7.96 points to 11,944.30 earlier today, and Hong Kong's Hang Seng index shed 170.84 points to 12,223.53.
In the US, trading ended down yesterday after Greenspan's announcement that deflation is no longer an issue for the US economy.The Dow Jones Industrial Average index lost 123.35 points to 10,314.50.
The S&P 500 index closed down 17.67 points at 1,118.15, and Nasdaq's Composite index shed 41.80 points to 1,978.63.IFAonline
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