FTSE sheds 1.8% as European markets slump

The UK's leading index was down 106 points at 5,666 by early afternoon, while France's Cac 40 was 2.3% lower at 3,115. In Germany, where a key manufacturing index fell to its lowest level July 2009, the Dax was down 2.4% at 6,588. Sentiment was also hit by the Bank of Spain's announcement the country was in recession after Q1 GDP fell 0.4% as well as the collapse of the Dutch coalition government over the weekend. FTSE miners were hit after Chinese manufacturing data suggested the industry was still contracting in April - albeit at a slower rate than in March. Vedanta Reources fell...