US markets open lower after J. P. Morgan results

The S&P 500 has opened down 0.85%, with financials under pressure after J.P. Morgan reported its third quarter results.

The index was down 10 points to 1,197 shortly after opening, with the Dow Jones falling 113 points or 1% to 11,405. J.P. Morgan fell 4.5% to $31.70 after kicking off the start of the US bank reporting season with net profit of $4.3bn in the third quarter, down from $4.4bn the previous year.

The figures were boosted by a $1.9bn debt valuation gain based on lower market valuations of the group's own debt.

Other financials were also under pressure, with Morgan Stanley falling 4.4% to $15.84, Bank of America down 3.5% to $6.58, and Citigroup down 4.3% to $27.96.

In the UK, the FTSE 100 was 1% lower at 5,387, with bank shares facing problems of their own following Fitch's downgrade of RBS and Lloyds' credit ratings.

European markets also slumped France's Cac 40 falling 1% to 3,195 and the Dax down 1.1% to 5,927.

Bank shares were under renewed pressure after the European Central Bank said enforced investor losses in eurozone bailouts posed a risk to financial stability and would have "direct negative effects" on the banking sector.

BNP Paribas was down 6.3% to €33.11, while SocGen dropped 4% to €22.21 amid widespread falls for European financials.