FTSE 100

The FTSE 100 has dropped more than 1% as the Spanish banking crisis intensified, with shares in bailed out Bankia shedding 25% today alone.

An admission by the head of the International Monetary Fund (IMF) that Greece may have to exit the eurozone caused further selling in London today, with shares falling to yet another multi-month low.

US stocks slumped overnight, pressuring the Dow Jones Industrial Average near to a four-month low, as political concerns in Greece continued to cloud the outlook for the global economy.

Markets across Europe suffered more losses this afternoon after Greece reportedly confirmed it has failed to form a coalition government.

US markets have fallen to three-month lows during trading today as the eurozone worries that resurfaced last week show little sign of subsiding.

Investment companies are being urged to issue zero dividend preference shares (ZDPs) rather than rely on banks to provide financing, to help ride out short term market volatility.

The UK's leading share index has fallen to its lowest level this year, slipping below 5,500, as Greece's continued failure to form a coalition government dampens risk appetite.

UK banking shares dragged the FTSE 100 lower this morning as sentiment struggled following J.P. Morgan's revelation that it lost $2bn in a trade which went awry.

SPECIAL REPORT

Markets in the US and Asia fell yesterday after a tough day for European shares which left many indices sharply lower.