Markets hit by bank stress test fallout

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

The index was at 5,781.52 as it entered the final hours of trading, down 1.06%. Although no UK banks failed the stress tests, some experts expressed concerns the tests were not strict enough, and did not fully take into account exposure to Greek debt. Financials have been among the biggest losers, with Royal Bank of Scotland down 4.45% at 33.53p, and Lloyds Banking Group down 3.87% at 42.96p per share. In Europe, the Dax had fallen to 7,144.66, a drop of 1.05%, while the Cac was at 3,676.23, down 1.35%. Eight European banks failed the stress tests, of which five were from Spain,...