MORE than £34bn was wiped from the value of the FTSE 100 Index yesterday as profit-taking and jitters over global growth sent markets into the red.

The London market was down 134.8 points to 6627.2, a two per cent fall.

The Organisation for Economic Co-operation and Development lowered forecasts for the UK’s growth prospects this year and next as it said the muted global recovery and tattered public and private sector balance sheets continue to weigh on growth.

It expects the UK economy to grow by 0.8 per cent this year and 1.5 per cent in 2014, down from its November forecast of 0.9 per cent growth this year and 1.6 per cent growth next year. And the Paris-based think tank said the eurozone will shrink by 0.6 per cent this year – far worse than its previous prediction of a 0.1 per cent contraction.

Investor nerves were also frayed after the CBI’s latest retail survey suggested UK sales plunged at their fastest pace in more than a year in May.

In London, heavilyweighted miners had dragged on the market after the International Monetary Fund cut its growth forecasts for China, but later clawed their way back or trimmed their losses.

Eurasian Natural Resources was one of just three FTSE 100 risers, up 3.4p to 251.4p.

Marks and Spencer and construction firm Amec were among London blue chips suffering in the selloff, with declines compounded as the two stocks turned ex-dividend, meaning investors will no longer qualify for the latest dividend payout.

M&S fell 13p to 472p, while Amec dropped 25p to 1034p.

Energy and utility firms were also under pressure, with National Grid the biggest faller, down 42.5p to 797p and SSE off 59p to 1569p.

Outside the top tier, banknote printer De La Rue was also in the red after its annual results, down 4.1 per cent or 40p to 946p, despite revealing plans to increase annual cost savings by £10m and confirming that new business is picking up, with the pipeline for orders ten per cent higher than a year earlier.

But retail chain Topps Tiles gained 1.1p to 68p, despite reporting a drop in half-year profits and worsening sales declines in recent weeks.