Markets in London and Frankfurt closed by around 0.5 per cent

Both have been affected by signals that the US economy is not recovering, with their figures showing poor consumer spending.

The fall in UK stocks comes after yesterday’s stellar performance, when they gained more than they had in a month. The reduced metal prices weighing on raw material producers. The Euro remains stable against the dollar. A German paper reported that the majority owners of WestLB would not support the bank’s need for more capital.

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