Afternoon markets: Lloyds biggest faller as FTSE drops

Lloyds Banking Group was the biggest faller at the close of trading as the FTSE 100 dropped to its lowest closing level during December.

The blue chip index dropped 1.8% to 5,428 as the European summit deal failed to buoy markets after initial enthusiasm.

Lloyds dropped hardest, down 8.6% to 24.42p, while peer Royal Bank of Scotland Group – which has grabbed a number of headlines today – also featured in the bottom five performers, falling 6.5% to 20.56p.

Essar Energy dropped 8.5% to 203.9p, Eurasian Natural Resources slipped 7.4% to 634.5p, while Kazakhmys fell 6.7% to 880p.

The biggest riser was Guinness brewer Diageo, up 1% to 1,374p. Both energy company SSE and Glaxosmithkline rose 0.6% to 1,263p and 1,432.5p, respectively.

Elsewhere Imperial Tobacco rose 0.5% to 2,363p, as news that the Office for Fair Trading had dropped a £112.3m fine, while retailer Next slipped 0.4% to 2,606p.

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