FTSE 100 dips as Cyprus bailout spooks global markets

London's leading share index has slid into the red in early trading, as eurozone contagion fears resurface following Cyprus' controversial bailout package.

Amid a move by Cyprus to impose a punitive tax on deposit holders, the FTSE 100 fell sharply at open - down 1.5% - but by mid-morning it had recovered much of the losses. At 10:01am, much of the losses had been pared, with the market down just 0.7% at 6,446 points. In Europe losses were greater, with the France Cac down 1.2% or 45 points to 3,799, while the German Dax gave up 1.11% or 91 points to fall to 7,951. The Cypriot government's controversial plan also hit Asian markets overnight, with Japan's Nikkei retreating 2.7% and Hong Kong's Hang Seng tumbling 2.1%. The euro also...