Bank of England boss's Brexit warning hits FTSE 100 Index
The London market fell after a stark warning from Bank of England boss Mark Carney that a vote to leave the EU could hit UK growth and jobs.
Bank governor Mr Carney revealed a Brexit vote could tip the UK into a possible "technical recession" and see the pound plunge in value.
The FTSE 100 Index fell 58.3 points to 6104.2, after Mr Carney said leaving the EU risked taking the UK into a crisis.
The warning came as the Bank slashed its growth outlook for the next three years and kept rates on hold at 0.5%, where they have been since March 2009.
Against this backdrop the pound lifted a cent against the euro at 1.27, even though German finance minister Wolfgang Schaeuble said the UK will not get an improved membership deal with the European Union if it votes to leave the 28-nation bloc.
Sterling was also slightly ahead against the US dollar at just under 1.45.
In Europe, Germany's Dax was 1% lower, while the Cac 40 in France was down by 0.5%.
Broadcaster ITV said that revenues grew 14% to £755 million in the first quarter, but warned that EU referendum concerns are impacting the television advertising market, sending shares down.
The network's stock fell 5.3p to 210p, despite the firm stating that its sales growth was driven by a strong performance at the company's television production arm, ITV Studios.
Royal Bank of Scotland (RBS) fell 4.1p to 209.6p after it emerged it has drawn up plans to axe 200 jobs as it cuts back its branch network.
The bank intends to scrub clerical roles in Scotland, Wales or south-west England, which will also lead to a number of branch closures.
RBS, which is 73% owned by the taxpayer, has cut around 1,350 posts out of a workforce of 12,000 staff in its branch network since mid-March.
The move is part of the bank's plans to slim down from a sprawling international bank to a UK-focused lender.
Elsewhere, SuperGroup, the company behind the Superdry fashion brand, said revenues rose 21% to £589.5 million over the year.
Annual like-for-like sales at the FTSE 250 retailer grew 11.3% and the company said it expects underlying pre-tax profit for the year to come in at between £72.5 million and £74 million.
Shares jumped almost 12%, or 145p, to 1405p.
Telecoms firm TalkTalk revealed full-year profits more than halved as it took a £42 million hit from last October's cyber attack, but said the business was bouncing back "strongly".
The FTSE 250 group saw pre-tax profits tumble to £14 million in the 12 months to the end of March, down from £32 million the previous year.
Shares fell 2p to 269.1p.
The biggest risers on the FTSE 100 Index were Compass Group up 20p to 1271p, Marks & Spencer up 6.2p to 424.5p, Randgold Resources up 75p to 6170p and Taylor Wimpey up 2.2p to 181.8p.
The biggest fallers on the FTSE 100 Index were Anglo American down 42.3p to 575p, Antofagasta down 19.6p to 406.1p, Glencore down 5.8p to 131.1p and Arm Holdings down 38p to 908p.