Morning Markets: FTSE drops 2.5% on German shorting ban

Miners are among the early fallers on the FTSE as European markets tumble following a ban on naked short-selling in Germany.

At shortly before 9.30am, London's leading index was down 2.46%, or 130.54 points, at 5,176.80. Elsewhere across Europe, shares fell sharply and the euro hit a new four-year low after Germany's financial regulator last night announced new curbs on financial speculators. The clampdown on 'naked' short selling - the practice of selling shares without owning them - covers sovereign bonds issued by eurozone countries, credit default swaps (CDS) on those bonds, and the shares of 10 of Germany's biggest financial institutions. It will run until 31 March next year. This morning, France's ...