FTSE 100 stages late fight-back

UK blue chip stocks were hit by another volatile session as the eurozone crisis continued to overshadow trading.

The FTSE 100 Index traded below 5,000 at one stage, but a late session fight-back saw the index close just 10.2 points lower at 5062.9.

Concerns lingered over Europe despite news that Germany approved its share of the 750 billion euro bail-out.

A bad day on the markets was compounded by heavy falls amid banking stocks after US senators voted ofr a crackdown on Wall Street.

it was steadier trading in America, however, that helped pull the FTSE 100 out of its tailspin.

City Index analyst, Joshua Raymond, said: "There are two key issues that investors have become increasingly sensitive about - how wider EU sovereign debt could impact economic growth for several years and the potential fo stricter financial regulation."