An analyst has warned Europe’s big exchanges face a tough 12 months, despite record trading across the board last year, after the London Stock Exchange’s share price fell 7.7% in only four hours this morning.

Mamoun Tazi, an analyst at MF Global Securities, said a combination of factors are now affecting the valuations of Europe’s stock exchanges, including those of the LSE, Deutsche Börse and NYSE Euronext, a week after they reported record trading levels for last year.