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FTSE falls after Moody’s drops Portugal to junk
Business Digest: 6,000 breakthrough short-lived as shares take a hit following Portugal downgrade
The FTSE 100 index dropped back below the 6,000 mark in early trading today in reaction to the downgrading last night of Portugal's debt to junk status by Moody's.
The big sufferers today were holders of European government debt, with RBS and Barclay's losing 2.5 per cent each.
Other European stock markets suffered too. The French CAC 40 lost 0.44 per cent, while Germany's Dax dropped almost 0.3 per cent.
Moody's slashed Portugal's debt rating by four notches to Ba2 on Tuesday, saying the country was likely to need a second bail-out before it could raise money in the capital markets.
Read a full report at the Daily Telegraph. ·
