Shares in British banks were down on the FTSE 100 in morning trading as concerns about the eurozone once again became centre stage.

Today ratings agency Moody's cut its debt rating on Irish banks, having cut the sovereign rating of Ireland by two notches late last week.

Meanwhile Greek bond yields continued to rise due to concerns about its debt, which led in tern to a widening of Spanish and Portuguese bond yields.

Looking further afield investors appeared to be concerned about rising inflation in China. Yesterday the Chinese government decreed that bank's hike their reserve requirements.

By 10:30 shares in Lloyds Banking Group were down 1.85 per cent to 59.00 pence per share, RBS shares declined 1.59 per cent to 41.99 pence per share, Barclays shares fell 2.02 per cent to 295.55 pence per share and HSBC shares dropped 0.81 per cent to 648.10 pence per share.

Overall the FTSE 100 was down 0.63 per cent to 5,958.38.