Afternoon Markets: Dow drops on China bank tightening

The Dow Jones fell 135 points in early trading after China said it would ask banks to up reserve levels, restricting their lending capabilities.

The index plunged toward the psychological 10,000 level, dropping 134.75 points, or 1.3%, to 10,009.44. Elsewhere, the S&P500 fell 1.1% and the Nasdaq composite lost 0.8%. It follows a strong performance Thursday after European leaders said they would help Greece with its debt problems. China's move comes a day after a tame inflation report raised hopes the nation would not have to further tighten monetary policy. In London, the FTSE continued to struggle with miners reeling on the bank of China developments. At shortly after 4pm GMT, the index was down more than 25 points,...