FTSE deep in the red as euro break-up fears mount

The FTSE 100 sold off sharply in early trading alongside indices across Europe as fears over a break-up of the region swept across markets once again.

Despite assurances from leaders across Europe including French president Nicolas Sarkozy, and German chancellor Angela Merkel, investors can see little way for Greece to avoid exiting the single currency. Although there was a rally last week following moves by central banks to provide additional liquidity in markets, this morning traders reverted to selling off positions. In reaction the FTSE 100 shed 1.5% or 82 points, falling to 5,286.2 after the opening bell. French and German shares were hit even harder, with the Cac 40 off 2.4% or 72 points, at 2,959.4, and the Dax down 2.3% o...