ftse 100 plunges through support levels

The FTSE 100 has plunged through support levels as the dire situation in the eurozone kept the bears in control on the market, Spanish banks were downgraded en masse by Moody's overnight, and Fitch cut its debt rating for Greece.


The UK's blue-chip index was down 49.53 points, or 0.9pc at 5,288.85, by 7.03am, having closed below 5,400 for the first time this year on Thursday, and set to record its third-straight week of losses as turmoil in the eurozone dominated the market backdrop.


"I've been heavily short of the market for the past two weeks and cannot see any light at the end of the tunnel," a London-based trader said.


"There's still belief that central banks and policy-makers will step in to support stricken euro zone countries as the consequences of a break-up are to ugly to bear thinking about, but the uncertainty is what is killing the market," he said.


Banks, which have massive exposure to the eurozone crisis, fell again, down 1.3pc, and are 16pc lower over the past three months.


Also on Friday morning, the French CAC fell 1pc, the German DAX lost 0.9pc, Spain's IBEX dropped 2.3pc and Italy's MIB was down 1.2pc. Spain's banks fell after Moody's downgrades yesterday.


http://www.telegraph.co.uk/finance/markets/9273968/FTSE-100-plunges-through-support-levels.html