London's FTSE 100 Index fell below the 7000 mark today after confidence was knocked by US figures showing that growth almost skidded to a halt.
The US economy expanded at an annual rate of just 0.2 per cent in the three months to the end of March, official figures showed - battered by harsh weather, plunging exports and sharp cutbacks in oil and gas drilling. Economists had forecast growth of one per cent.
The news pushed the FTSE 100 Index 84.3 points lower at 6946.3, having fallen by 73.5 points on Tuesday night following weak UK GDP figures and jitters over the interest rate outlook in the United States.
The pound was a cent higher than the dollar at a little under 1.55 on the US growth news, which pushed the likelihood of an interest rate hike from June to September according to many economists.
However, sterling was a cent lower than the euro at just under 1.39, despite stagnant debt crisis talks with Greece. France's Cac 40 and Germany Dax were both sharply lower.
In the top flight the weakness among mining stocks continued after weaker copper output figures from Antofagasta. The Chilean miner slipped 18p to 784p and BHP Billiton eased 25.5p to 1564p.
Retailers took up some of the slack as Next rallied as much as three per cent before closing up 120p to 7285p after figures showed its sales grew 3.2 per cent in the 13 weeks to April 25.
April's warm weather boosted the result, which was better than the company's previous forecast for growth of up to three per cent in the first half of its financial year.
The retail cheer extended to the FTSE 250 Index after sandwiches chain Greggs said its like-for-like sales lifted 5.9 per cent in the 16 weeks to April 25.
It will also return £20 million to investors through a 20p a share special dividend after carrying out a capital review of its business. This replaces a proposed £10 million share buyback programme announced in March. Shares lifted more than seven per cent, or 79p to 1155p.
Simply Be and Jacamo catalogue business N Brown also did well after it said it was hopeful of future profit growth despite a "disappointing" 13 per cent drop in profits for the year to February 25.
Modernisation efforts put strain on the business but chief executive Angela Spindler said there were reasons to look to the year ahead with more confidence. Shares responded with a gain of 29.3p to 351.1p.
Among other retail stocks, B&Q owner Kingfisher fell 1.4p to 349p, although Sports Direct International improved 7.5p to 604.5p.
Elsewhere, shares in Barclays were almost two per cent lower after it announced an additional £1 billion of provisions to cover the mis-selling of payment protection insurance and potential fines for foreign exchange rigging.
Underlying profits were nine per cent higher at £1.85 billion in the first half of the year but shares still dipped 4.45p to 256.95p.
The biggest risers on the FTSE 100 Index were Weir Group up 98p at 1836p, Next up 120p at 7285p, Royal Mail up 6.6p at 444.2p and Intercontinental Hotels Group up 40p at 2844p.
The biggest fallers on the FTSE 100 Index were Hikma Pharmaceuticals down 79p at 2042p, CRH down 69p at 1823p, Dixons Carphone down 13.1p at 418.9p and Carnival down 92p at 2964p.
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