FTSE slides as banks weigh on European sentiment

The FTSE 100 has extended losses as concerns over eurozone banks' need for more capital hit sentiment across the continent.

The UK's blue chip index stood down 0.8% at 5,623 shortly before midday, as European indices fell further into the red, driven down by financial stocks. After falling more than 14% yesterday, Italian bank UniCredit was down a further 10% in morning trading as investors continued to react to news the bank would price its rights issue at a 43% discount. Other major European financials were also lower, with Germany's Deutsche Bank and Commerzbank and France's Société Générale all down by more than 4%. Fears UK banks are less in need of capital than their eurozone peers has seen RBS an...