SYDNEY: The Australian share market has tumbled 1.5 per cent after negotiations between Greece and its creditors faltered, while a selling frenzy across Chinese stock markets spooked local investors.
It was one giant step forward and two small steps back in the Greek talks. While Prime Minister Alexis Tsipras insisted that a deal was still possible, negotiations overnight ended without result.
Meanwhile, Germany and France warned Greece that it needs to reach a deal at “decisive” talks tomorrow to avert default and a possible euro exit.
To add to the mess, bearish investors went into overdrive in Chinese markets, sending the Shanghai and Shenzhen markets into a nosedive.
At the 4.15pm (AEST) official market close, the benchmark S & P /ASX 200 index was down 86.8 points, or 1.54 per cent, to 5,545.9, while the broader All Ordinaries index gave up 83.8 points, or 1.49 per cent, to 5,536.1.
