Markets turn red on US data and Greek downgrade

Woeful economic data in the US and a three notch downgrade of Greece's credit rating saw global markets tumble overnight.

At London opening the FTSE index of 100 leading shares was down 1.03% at 5,868. Overnight, major indices including the S&P 500 and Nikkei 225 dived sharply after US jobs data missed the mark. An estimate by ADP, the payroll processor, the US private sector created just 38,000 new jobs in May fell well below a forecast gain of 175,000, hurting sentiment. The disappointing jobs data coincided with a manufacturing survey which showed a 19-month low in production and a drop-off in car sales, sending the S&P 500 down 2.3% to close at 1,315 points. Meanwhile in Asia markets were hit b...