Mining stocks were among the biggest fallers as the London market dropped nearly 3 per cent in the wake of Standard & Poor’s decision to revise the outlook for the UK’s sovereign debt rating.

Stake fears hit Thomas Cook

Tour operator Thomas Cook was in focus. Its shares dipped 2.3 per cent to 233½p after Citigroup said German retailer Arcandor might be forced to sell its stake. Arcandor must roll over €710m worth of debt by June 12. If it fails to do so Citi analyst Louise North believes it could be forced to dispose of its 52 per cent holding. She thinks Arcandor might reveal its hand with second quarter results next week