THE FTSE 100 Index shed 1.2 per cent, closing down 74.1 points to 6229.9, amid growing concerns over the future of Portugal’s coalition government.

As well as political uncertainty in Egypt, investors were also spooked by disappointing data from the Chinese non-manufacturing sector.

Yesterday’s fall on the FTSE 100 saw it lose some of the rebound seen in recent days after earlier losses triggered by credit crunch fears in China and the prospect of a tapering of economic stimulus measures in the US.

The uncertain global outlook was reflected in the price of oil, with the New York listed price at its highest level in more than a year after a rise of more than $2 (£1.30) to about $102 (£67) a barrel.

Further cheer on the UK economy saw the pound gain strength after a closely watched purchasing managers’ index showed activity in the powerhouse services sector rising at its fastest pace for more than two years last month.

Commodity-based stocks came under pressure, with Anglo American leading miners lower with a fall of six per cent, or 73p to 1207p, followed by Vedanta Resources 30p cheaper at 1009p and Glencore Xstrata 7p lower at 269p.

Other fallers included Barclays after the agency Standard and Poor’s cut its long-term rating by one notch amid concerns about the impact of continued regulatory pressure.

Shares were down 2.25p at 280.75p, while elsewhere in the sector Standard Chartered was off 36p to 1427.5p and HSBC dropped 13.9p to 680.9p.

Airline Flybe enjoyed a much-needed rally after it announced the appointment of easyJet’s former chief commercial officer Saad Hammad as chief executive to replace longterm boss Jim French, who is to remain as chairman.

Shares jumped nine per cent or 4p to 50.5p.