Morning markets: Eurozone rating actions chill FTSE 100

The announcement by rating agency Standard & Poor’s that 15 eurozone countries have been placed on CreditWatch with a negative outlook sees the FTSE 100 dip in early trading.

The blue chip index was down 0.4% to 5,545 (at around 0811 GMT) on the news, with banks among the biggest fallers.

However, Essar Energy was the heaviest faller in early trading, dropping by 3.4% to 240p (at 0808 GMT).

It was followed by Royal Bank of Scotland Group, dropping by 3% to 22.08p. Engineer Meggit slipped 2.6% to 373.7p, while both copper miner Kazakhmys and Barclays fell 2.4% to 945p and 187.1p, respectively.

The biggest climbers were supermarkets Sainsbury’s and Tesco, both up 0.3% to 299.4p and 407.8p, respectively (at 0807 GMT). Morrisons similarly rose in early trading, up 0.2% to 318.4p.

Imperial Tobacco joined Sainsbury’s and Tesco at the top, also up 0.3% to 2,311p.

Vodafone increased by 0.2% to 173.4p.

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