FTSE 100

European markets have surged on reports eurozone leaders will back a 'selective default' on Greek debt.

News Corp's shares jumped 5.5% following yesterday's parliamentary hearing with the group's chiefs Rupert and James Murdoch.

Bank shares climbed in early trading, regaining some ground after Friday's stress test results caused sharp falls in the UK's major banks.

Markets have remained lower this afternoon as negative reaction to European bank stress tests continue to drag on the FTSE 100.

The FTSE 100 fell below the 6,000 level in mid-morning trading as European markets absorbed Moody's downgrade of Portuguese debt to 'junk' status.

Nervous markets were further soothed yesterday as Greek MPs passed a law to implement strict austerity measures in a second round of voting.

US markets got off to a mixed start Monday as European nations continued to debate the future of Greece.

When the compulsory begging bowl went around the industry to compensate Keydata investors, the industry was rightly indignant.

The FTSE 100 was down more than 1.3% in early afternoon trading as weak data from China and ongoing fears for the US economy hit risk assets.

European markets rallied this morning on news the European Union will support troubled Greece if it introduces additional spending cuts and a privatisation programme.