Investors dump risk assets on EU summit fears

The FTSE 100 sold-off in early trading as optimism over the EU's latest deal to tackle the crisis faded and investors dumped risk assets.

By mid-morning the blue chip index was down 48 points or 0.9%, at 5,481 points, as investors sold off risk assets across the board in the wake of the talks in Europe.

With the UK moving to veto the changed treaty, the remaining members will now look to introduce a package of measures designed to shore up governments' balance sheets, reduce debts, and enforce more fiscal discipline on peripheral economies.

However, with the region still facing massive economic challenges, markets across Europe were downbeat.

The French Cac 40 was down 1.7% or 54.4 points at 3,117 points, while the German Dax shed 130 points or 2.2%, to 5,857.

The losses come despite a positive start to the week for Asia, with the Nikkei closing up 1.4% or 117 points, at 8,653.

Gold was also down 1.9% or $33, to $1,683, while Brent crude fell 1%, or $1.35, to $107 per barrel.