FTSE 100 drops 1.31 pct on Thursday

FTSE 100 Index, British benchmark stock market gauge, Thursday decreased by 1.31 percent, or 91.22 points, to 6,859.24 points.

The London stock index slumped on Thursday following recent volatility in sovereign debt markets. The yield on 10-year German bonds fell to 0.84 percent after two days of sharp rises.

Royal Mail share price decreased as British Chancellor of Exchequer George Osborne announced the government would sell its remaining 30 percent stake in Royal Mail Group, aiming to achieve the deficit cut target.

Besides, the Bank of England (BoE) monetary policy committee Thursday voted to keep its main interest rate Bank Rate unchanged at 0.5 percent, and quantitative easing (QE) policy at 375 billion pounds (or 576 billion U.S. dollars).

Kingfisher's share price increased by 2.66 percent, topped the gainers of the blue chips. British Land Company, Royal Bank of Scotland Group, easyJet and Babcock International Group increased by 0.84 percent, 0.66 percent, 0.63 percent and 0.62 percent respectively.

Johnson Matthey led the top losers of the blue chips with a share price drop of 5.26 percent, followed by National Grid (5.08 percent), Royal Mail (4.94 percent), Anglo American (4.10 percent) and WPP (3.46 percent). Endit