FTSE 100 falls, set for first quarterly drop since Sept 2020

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* FTSE 100 down 1.5%, FTSE 250 off 1.4%

June 30 (Reuters) - London's FTSE 100 fell on Thursday and was set for its first quarterly decline since September 2020 on concerns that prolonged inflationary pressures would force central banks to act aggressively, leading to a global economic downturn.

The blue-chip index .FTSE dropped 1.5% by 0706 GMT, and was also on course for its biggest monthly decline since March 2020.

The domestically focused mid-cap FTSE 250 index .FTMC declined 1.4% and has dropped more than 11% in the April-June quarter, as investors price in lower UK economic growth and corporate profits in the wake of soaring inflation, which the Bank of England expects would exceed 11% in October.

The FTSE 250 index is already in a bear market, down 22.6% from its record closing high in September 2021.

Heavyweight oil companies BP Plc BP.L and Shell SHEL.L slipped 1.6% and 2.1%, respectively, while industrial metal and mining stocks .FTNMX551020 dropped 2.2%.

HSBC Holdings HSBA.L , Lloyds LLOY.L and Natwest Group NWG.L fell between 0.7% and 1.4% after Barclays cut its price targets on the banks' stocks.
Reporting by Devik Jain in Bengaluru; Editing by Rashmi Aich

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