FTSE 100 retreats after Italian bond auction

After closing 1.1% higher on Tuesday UK's FTSE 100 sharply retreated during Wednesday after Italy faced record high borrowing costs and Federal Reserve rejected prolonging quantitative easing. UK benchmark lost 0.9% falling to 5,441.99 during afternoon. On the downside were banking and resource stocks. Barclays PLC dropped 2.91% while RBS lost 1.76%. Royal Dutch Shell PLC and BP PLC each declined around 1%. Metal producer Rio Tinto PLC traded down 2.4%. At the moment of writing FTSE 100 is down 1.26% or 69.04 points at 5,421.11.