Traders in London followed suit, with top equities falling amid caution ahead of the UK’s own pivotal interest rate decision.
Bank of England policymakers are expected to hold interest rates at 4.75% following their latest Monetary Policy Committee meeting.
The pound lifted in value as a result, while the dollar came under pressure following the US cut.
Sterling was up 0.57% at 1.263 against the US dollar shortly before the noon interest rate decision.
The strength of the pound helped to heap more pressure on major London-listed firms.
The FTSE 100 was down 112 points, or 1.37%, at 8,087.11, taking the index to its lowest for almost a month.
Lenders and housing firms were among the biggest fallers as they digested the cut to US rates and predicted a hold for UK interest rates.
Weakness in London came after the main US market fell sharply in Wednesday trading.
The slump was sparked by the US Federal Reserve, which cut interest…
