Eurozone jitters drag FTSE lower

London Stock ExchangeThe London market continued to come under pressure after a credit rating agency hit Germany with a negative outlook and added to ongoing fears over the future of the eurozone.

The FTSE 100 Index was 10 points lower at 5523 after a pounding on Monday when it fell 2%, wiping £30 billion from its value amid concerns over Spain and Greece.
Moody's last night lowered its outlook on Germany's credit rating to negative from stable, denting faith in Europe's strongest economy.
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The move came after a turbulent day for the single currency bloc, which saw the yield on 10-year Spanish bond hit euro-era highs of 7.5% as it became increasingly likely that the country would need an EU bailout.

Banking stocks suffered amid the ongoing weak sentiment and following reports that they would reveal additional charges for mis-selling payment protection insurance (PPI).

Royal Bank of Scotland was 2% or 4.3p lower at 193.5p, Barclays slipped 2.3p to 150.3p and Lloyds Banking Group dropped 0.4p to 28.9p.

Outside the top flight, Carpetright fell 2% or 11p to 604p despite revealing an encouraging update which showed growth in UK like-for-like sales of 1.7% for the 12 weeks to July 21.

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