FTSE 100 down 0.2, FTSE 250 down 0.6
Petrofac plummets to all time low
Sage group slumps to bottom of FTSE 100

Dec 20 Reuters UK39;s exportoriented FTSE 100 index fell on Tuesday as investors turned riskaverse after the Bank of Japan unexpectedly tweaked its monetary policy, while oil services provider Petrofac dropped to an alltime low.

The bluechip FTSE 100 fell 0.2, while the midcap FTSE 250 was off 0.6. The Europewide STOXX 600 index was down 0.5.

Weighing on global equities, the Bank of Japan widened longterm yield controls that allow longterm interest rates to rise more. Back home, yields on longterm gilts climbed 1.5 by 0941 GMT.

The fact that we39;ve seen this shift in a more hawkish direction from arguably the most dovish central bank across the world has weighed on risk sentiment including in the UK, the U.S. futures and Europe as well, said Justin Mcqueen, market specialist at Capital.com.

The BoJ39;s unexpected shift in monetary policy would make it the latest central bank to join the tightening camp since last week, while also reflecting the camp39;s focus on tackling price pressures.

Among smallcaps, Petrofac Ltd plunged 10.0 after it said it could post an operating loss for the year due to challenges in recovering costs in its engineering and construction EC division.

Whilst legacy issues should have less of an impact going forward, it seems that the division won39;t return to profitability next year, said Derren Nathan, head of equity research…