Morning markets: FTSE falls as resource firms struggle

The FTSE fell in early trading, dragged down by negative market sentiment towards resources firms.

The index was down 1.3% at 5209.8 points in the first 45 minutes' trading. Tullow Oil fell by 4.2% to £11.65, as it announced a share placement equivalent to 10% of its existing share base, while miner Xstrata dropped by 4.2% to £10.38. Cooper miner Kazakhmys fell, by 2.6% to £12.41, on reports of China tightening control over its banks, which fuelled fears copper demand from the country could fall. The main gainer was chemicals producer Johnson Matthey, which rose by 0.1% to £15.09 after it forecast full year results would be "slightly ahead of current market consensus". Accoun...