FTSE 100 Down 36 Points In Midday Trade

(RTTNews) - U.K. shares drifted lower on Wednesday as Europe's major markets lost sharply on worries over Brexit and Italy's banking system. Sterling hit a fresh 31-year low against the dollar, giving a boost to exporters and companies with big overseas operations.

The benchmark FTSE 100 was down 36 points or 0.56 percent at 6,509 in midday trading after rising 0.4 percent in the previous session. Elsewhere, the German DAX and France's CAC 40 index were down around 1.7 percent each.

Property stocks such as Berkeley Group Holdings, Taylor Wimpey and Barratt Developments lost 2-6 percent after M&G joined Standard Life Investments and Aviva in suspending trading on its property fund in order to meet redemptions.

Life and health insurer Aviva retreated 4 percent despite promising higher dividends in 2017.

Standard Life dropped 1.5 percent and Prudential fell 2 percent.

Budget carrier easyJet tumbled 3 percent after confirming it is seeking another air operator's certificate outside of the U.K.

Utilities National Grid, United Utilities and Severn Trent rose about 1 percent each as investors chased yields in a low interest-rate environment.

Booker Group rallied 2 percent after the food wholesaler said it remains on course to meet expectations for fiscal 2017.