Integrity fears over eurozone debt deal send FTSE lower

The top share index in the UK tumbled on Monday as analysts questioned the level of detail that came out of last week's key European summit. By the close of the first session of the week, the FTSE 100 was down by 1.8 per cent, sliding by over 101 points to reach 5427.

The long-awaited summit last week appears to have changed little in the minds of analysts who were sceptical over the lack of detailed information which has been provided over the way forward. Experts have suggested that there remains a huge amount of work left for leaders to do to create the solution to solve the debt crisis and that failure to provide hard details leaves the ECB unable to provide further support.

Investors fled from riskier assets and sought out more defensive stocks as a reaction to the disappointment of the summit conclusion.

Drinks manufacturer Diageo added 1 per cent whilst GlaxoSmithKline climbed by 0.3 per cent. Imperial Tobacco, another defensive stock was also higher by 0.5 per cent but received an additional boost as it saw its £112 million OFT penalty overturned.

Moving in the opposite direction were the miners and bankers, as investors fled from the high risk stocks.

Royal Bank of Scotland was lower by 6.5 per cent, but it was doubly rocked by the releasing of a report outlining the managerial failures within the organisation which contributed to its collapse.

The miners had a poor day despite strong copper data from China, but faring particularly badly was Eurasian Natural Resources Corporation which plummeted by 7.4 per cent. The firm was sent lower by weekend newspaper talking linking the Serious Fraud Office with the miner, with speculation over corruption amongst the ranks.

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