FTSE on the slide

The London market dived below the 5700 mark today as economic fears resurfaced on news that the Greek budget deficit was bigger than expected.

News of the revised official figures sent Greece's borrowing costs shooting up to new record highs, while investors across Europe headed for the exit.

The FTSE 100 Index dropped nearly 1% - down 43.8 points to 5679.7 - despite a more upbeat start to the session.

European statistics agency Eurostat reported Greece's budget deficit in 2009 was 13.6% of gross domestic product, instead of the previously predicted 12.9%, while the ratio of government debt to GDP stood at 115.1%, the second highest in the EU after Italy.

The agency also expressed "a reservation on the quality of the data reported by Greece", and warned the 2009 figures could be revised further.

After a poor performance on Asian markets overnight - in which the Nikkei fell 1% - European indices all slumped into the red.

France's CAC 40 and the Dax in Germany were both down 0.9%.

The Greece fears saw the euro take a further hit, with the pound up to levels not seen since February against the single currency.

Indications of weak crude demand in the US sent oil prices lower to around $83 a barrel.

In London, oil and commodities firms littered the fallers board, led by Tullow Oil, down 36p at 1217p.

Financial firms were also on the back foot, with Prudential down 13p to 551.5p and Aviva 8.9p lower at 376.8p.

British Airways was also down 4.1p at 229.4p as airline losses remain in the spotlight following the closure of European airspace as a result of the Icelandic volcanic eruption.

Updates from the FTSE 250 Index boosted confidence, with gaming firm Rank and housebuilder Persimmon among those on the front foot.

Rank's performance was lifted by the success of its new-look Grosvenor Casino business, while its Mecca bingo arm also showed signs of resilience. Shares responded with a gain of 3%, up 3.5p to 121.4p.

Persimmon followed with an improvement of 3%, or 14p to 479.7p, after its trading statement showed sales volumes have remained consistent despite the backdrop of continued election uncertainty.

Sports World retailer Sports Direct International declined over 1% despite posting sales growth of nearly 3% and said it remained on course to meet its recently improved full-year earnings target.

Shares were 1.3p lower at 106.7p.