Morning markets: UK treaty refusal sees markets open lower

The UK veto of European Union treaty changes leads the markets to open lower, with the FTSE 100 index continuing to drop towards 5,400.

News of a UK veto to treaty changes broke as it emerged that prime minister David Cameron had failed to win concessions for the financial services sector.

The biggest faller early on was insurer Aviva, dropping by 1.5% to 309.5p (at 0813 GMT), followed closely by Investec, which fell 1.4% to 347.5p.

Engineer IMI dropped 1.2% to 728.5p, as Eurasian Natural Resources and biopharmaceutical company Shire both slipped 1.1% to 658.5p and 2,125p, respectively.

There were few significant risers in early trading. Asset manager Ashmore and BG Group led the pack, rising by 0.5% each to 339.9p and 1,358.5p, respectively (at 0811 GMT).

Petrofac rose 0.4% to 1,406p, Sainsbury’s was up 0.3% to 294.5p, while Vodafone increased by 0.2% to 172.85p.

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