London's FTSE 100 opened almost 100 points lower following a beating for US stocks on the reaction to the US rate cut overnight.
It was the Fed chair’s comments that there will be fewer rate cuts next year due to stubbornly high inflation that did the damage rather than the reduction itself.
The Dow Jones tumbled 2.6%, marking its tenth day of falls which is its worst run since 1978.
London has its own interest rate decision at noon with inflation here also going up.
Water utilities were among the few risers as Ofwat relented and seemed to give the listed groups more or less what they asked for in the price review for the next five years. Severn Trent was up 1.1% and United Utilities by 0.2%.
Outsourcer Serco was also higher on a reassuring trading statement with margin and profits guidance for 2025 better than expected.
Finally, Lloyds Bank got some respite as the Financial Conduct Authority has increased the time companies have to address complaints over historic motor finance deals.
