FTSE moves below 5,300 as equities slump again

European equity markets have given up all yesterday's gains as investors remain on the back foot ahead of today's EU summit.

The FTSE 100 was down 1.9% in mid-morning trading at 5,299, reversing yesterday's 1.9% gain, with France's Cac 40 and Germany's DAX both down 1.7% at 3,032 and 6,323 respectively. Miners led the falls in London after the World Bank cut its China growth forecast for 2012 from 8.5% to 8.2%, its lowest level in a decade. Vedanta and Kazakhmys were the biggest fallers, dropping 5.6% each. Banks across the continent were also under pressure as latest eurozone developments suggested a familiar stalemate is emerging amid reports Germany has again rejected the idea of collective eurobonds. ...