Fears of fresh Portuguese bailout hit markets

The FTSE 100 has fallen 1.1% as concerns over Portugal and the continued lack of a Greek bond swap deal weigh on global markets.

The UK's blue chip index extended earlier losses, dropping to 5,651, after US markets opened and mirrored the uneasiness seen elsewhere earlier in the day. Losses were later pared but the index remained down 1.1% at 5,671. The S&P 500 is testing the 1,300 resistance level after dropping 0.9%, with the Dow falling 0.8% to 12,555. On the Continent, the Dax was down 1.2% at 6,432 with the Cac 40 down 1.4% to 3,273 in France. Banks and miners led the falls in the UK, with Lloyds among the largest fallers - 4.3% lower at 31p - as concerns over Greece and Portugal resurfaced. EU leaders ...