Banking shares drag on FTSE; Oil hits 18-month low

World markets including the FTSE fell in early trading as weak economic data and Moody's downgrade of 15 banks unnerved investors.

Meanwhile, concerns about slowing global demand also hit oil prices with brent crude dropping to an 18-month low of $88.90 a barrel, matching December 2010 lows set in the previous trading session. In London, the FTSE 100 fell nearly 1% on opening this morning after Moody's downgrade of 15 major financial institutions weakened banking shares. Credit Suisse received the most severe downgrade at three notches, the maximum allowed in the review. Ten other banks were downgraded by two notches and the remaining four, including RBS and HSBC suffered a one notch downgrade. Just before 11a...