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FTSE 100 Falls On Fed Rate Hike Worries

U.K. stocks fell sharply on Thursday after upbeat U.S. data lifted U.S. Treasury yields to levels not seen since 2011.

Markets expect an 80 percent probability of a Fed rate rise in December and three more rate hikes in 2019, with risks to the upside.

Investors also kept an eye on Italy, where the coalition government set budget deficit target of 2.1 percent of GDP for 2020 and 1.8 percent of GDP for the following year.

The government needs to obtain European authorities' approval to keep the 2019 deficit level at 2.4 percent.

The benchmark FTSE 100 was down 65 points or 0.87 percent at 7,445 in late opening deals after gaining half a percent in the previous session.

Ted Baker slumped more than 10 percent. The luxury clothing retail company has warned of challenges ahead after reporting a 3.2 percent fall in pre-tax profits for the 28 weeks ended 11 August 2018.

BTG soared 5 percent. The healthcare company upgraded its sales forecast after delivering good product sales growth in the first half, with positive momentum across all areas of the business.

Engineering firm Smiths Group slid half a percent after it entered into an agreement to acquire United Flexible, Inc.

EasyJet fell over 1 percent after unveiling passenger traffic figures for September.

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