The FTSE 100 gave back strong early gains on Thursday to close lower after the Bank of England delivered a “hawkish” interest rate hike and as US stocks plunged.

The London index closed down 46.55 points, 0.4%, at 10,782.66. It had earlier traded as high as 10,948.24.

The FTSE 250 ended 213.71 points lower, 0.9%, at 24,701.98, and the AIM all-share shed 3.80 points, 0.5%, at 757.09.

In Europe, the Cac 40 in Paris rose 0.3%, and the Dax 40 in Frankfurt declined 0.4%, after hitting a record high earlier.

Stocks in London made a buoyant start boosted by the lower oil price, leaving the blue chip FTSE 100 on course to post a record close, but the gains evaporated amid a sea of red on US trading screens.

Around the time of the London equities close on Thursday, the Dow Jones Industrial Average was down 2.2%, the S&P 500 was 2.9% lower and the Nasdaq Composite slumped 3.7%.

The hefty falls come amid worries that the Democrats will rein in spending on data centres which has fuelled the surge in AI-related…