(Reuters) - UK shares fell to their lowest in more than two years on Thursday, joining a wider market selloff, after the U.S. Federal Reserve bank dampened hopes for a milder policy outlook even as the global economy cools.
The FTSE 100 <.FTSE> was down 1.3 percent at 0850 GMT after hitting its lowest since Aug. 4 2016 in early deals. Only three stocks - Shire
The mid-cap index <.FTMC> was 1.6 percent lower, its weakest since September 2016 partly tugged down by lacklustre response to builder Kier Group's
The UK indexes are on track for their worst year since the 2008 financial crisis, and the Fed's tone deepened concerns already augmented by Brexit worries.
Despite calls by U.S. President Donald Trump for the Fed to stop raising interest rates, the central bank on Wednesday stuck by a plan to keep repealing support from an economy it views as strong, sending Wall Street spiralling down.
Banks with a larger international exposure were the biggest drags on the main index, with heavyweight HSBC
The Fed news and falling greenback also knocked mining stocks, with Antofagasta
In news-driven moves, mid-cap construction firm Kier Group
Investors have dumped shares in the construction sector amid worries about mounting debts after Carillion's
Among smaller moves, AIM-listed electricity and gas supplier Yu Group
(Reporting by Muvija M and Shashwat Awasthi in Bengaluru; editing by Josephine Mason)