Market jitters hit share index

Nervous traders wiped £28.5 billion from the value of London’s leading shares index yesterday as fear intensified that Greece will cquit the euro.

Another day of turmoil saw the FTSE 100 Index close 110 points lower at 5465.5 as attempts to form a coalition government in Greece continued to stutter. This leaves the country facing the prospect of another election next month, putting its future in the eurozone in increasing doubt.

The uncertainty hit banking shares yesterday, with Royal Bank of Scotland, Barclays and Lloyds Banking Group among the biggest fallers. Germany’s Dax and France’s Cac-40 were both down about 2 per cent.

PETER CRIPPS