The FTSE 100 broke its three-day winning streak after a volatile session in the US marred by downbeat consumer confidence data that stoked worries about a global economic slowdown.

The UK’s blue-chip index opened 0.4%, or 25 points, lower at 7,297 following a broad sell-off on Wall Street amid what Markets.com analyst Neil Wilson described as a ‘batch of troublesome data’.

While the S&P 500 ended the session down 2%, tech stocks took the brunt of recession woes, with the Nasdaq index closing 3% lower.

The falls were prompted by US consumer confidence falling to a 16-month low as high inflation led consumers to anticipate the economy would slow significantly and possibly even slide into recession in the second half of the year. On top of that inflation expectations remain elevated for the next year, revised up from 7.5% to 8%, the highest level since the survey started in 1987.

Richard Hunter, head of markets at Interactive Investor, said attempts at retaining the recent rally were ‘short-lived’ as investors failed to avoid the ‘pervasive fear of a global slowdown’.

‘With the consumer being central to US economic growth, the recent raft of pessimistic readings has led to some concerns that sentiment could become self-fulfilling as consumers hunker down in the face of higher prices, especially fuel and food,’ he said.

‘The Federal Reserve will of course be aware of the deteriorating sentiment, but for the moment is showing no signs of abandoning its primary objective of battling inflation head-on.’

Investors will be tuned into the European Central Bank forum in Portugal later today where central bank leaders, including the Fed and Bank of England, will speak about how best to tackle inflation.

British Land (BLND) dropped to the bottom of the FTSE, shedding 4.5%, or 22p, to 484p after Peel Hunt cut its target price to 590p. It dragged down other property developers, including Land Securities (LAND), which shed 3.2% to 712p, and student accommodation builder Unite (UTG), 2.9% off at £11.05.

Utility stocks were the index’s saving grace as regulator Ofgem announced a £20.9bn package to boost grid capacity. National Grid (NG) added 1.2% to £10.83 and Harbour Energy (HBR) firmed 0.5% to 377p. 

The ‘mid cap’ FTSE 250 – considered a bellwether for the economic strength of the UK economy – slipped 1%, or 198 points, at 19,152. It has slumped 20% this year against a 3% dip in the more resilient FTSE 100.

Carnival (CCL) was the biggest mid cap faller, tumbling 11%, or 86p, to 694p on downbeat analyst notes. It was followed by shared office provider Workspace (WKP), which lost 6.1% to £19.02 after chief executive Graham Clemett sold shares.

In investment trust news, Scottish Mortgage (SMT ) suffered from the sell-off in tech stocks in the US overnight, losing 2.4% to trade at 726p. Bellevue Healthcare (BBH ) fell 3.5% to 147p and Abrdn Private Equity Opportunities (APEO ) was down 2.9% at 455p.