BUSINESS CLOSE: FTSE 100 dives 2.6%

Stock markets around the world have tumbled as investors sparked a sell-off triggered by fears of a Russia - Ukraine conflict.

The FTSE 100's losses gathered pace through the day, with the leading UK stock market index closing down 2.6 per cent, or 197 points, at 7,297.1.  

The more UK-focused FTSE 250 also suffered heavy losses, with the mid-cap index ending the day 3.6 per cent, or 810.74 points lower at 21,452.50.

Across the Atlantic, the situation was similar, with investors also in risk-aversion mode ahead of a key Federal Reserve policy meeting later this week that could cement expectations of a rate rise in the coming months. 

By 5pm, the Dow Jones was down 2.4 per cent, the S&P 500 was 3 per cent in the red and the tech-heavy Nasdaq was 3.5 per cent lower. 

The global sell-off comes as tensions between Russia and the West over Ukraine have intensified. 

Amid fears that an invasion is imminent, the UK began withdrawing diplomats from its mission in Kiev today - following a similar US move at the weekend.

There are also concerns that any escalation of the stand-off will send gas prices spiralling again, with threats of punitive sanctions against Moscow.

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De La Rue forecast adjusted operating profit for the year to be in the range of £36 million to £40million, versus market expectations of £45million to £47million