FTSE extends losses as Eurozone debt fears grow

FINANCIALS and commodity stocks led a sharp fall on Britain’s FTSE 100 yesterday as investors extended a recent sell-off on worries that Europe’s debt problems would spread beyond Greece, Portugal and Ireland.

Eurozone finance ministers on Monday promised cheaper loans, longer maturities and a more flexible rescue fund in an effort to prevent debt contagion in Italy and Spain.

But markets effectively told politicians that not enough was being done, with London’s blue chip index closing down 60.20 points, or 1.0 per cent to 5,868.96 as EU ministers set no deadline.