European indexes fell, following a drop in US stocks last night, and amid gloomy news from companies such as UK retailer next or Irish lender Allied Irish Bank.
The rise in Lloyds Banking Group shares, after the taxpayer-owned bank posted its first profit since buying HBOS, wasn't enough to turn the market into the black. Lloyds shares rose 1 penny, or 1.3%, to 72.95 at 9:20am.
The FT-SE 100 fell 58 points, or 1%, to 5,338 points. It was dragged down by Next, after Britain's No. 2 fashion retailer reported a slowdown in consumer spending. The shares plunged 158p, or 7.2%, to £20.41.
The company said in a statement: "There has been a noticeable cooling in retail demand in recent months, the mood amongst consumers is best characterised as cautious. We believe that consumer spending will be more restrained in the second half than in the first, as spending cuts and tax rises begin to take effect."
Germany's Dax index fell 0.4% to 6,281 points, while the CAC of France lost 0.5% to 3,728.8 points.
In Dublin, Allied Irish Banks Plc tumbled 6.3% to €0.925 after reporting a wider first-half loss.
