LONDON: Europe’s main stock markets have slumped as market uncertainty resurfaces over Greece reaching a debt deal with its EU-IMF creditors.
London’s benchmark FTSE 100 slid 1.03 per cent to close at 7,030.53 points on Tuesday, with investor outlook also taking a knock from disappointing British growth data ahead of next week’s general election.
Frankfurt’s DAX 30 index sank 1.89 per cent to 11,811.66 points and the CAC 40 in Paris tumbled 1.81 per cent to 5,173.38 compared with Monday’s close.
In foreign exchange activity, the euro rose to $US1.0971 from $US1.0889 late in New York on Monday.
‘The market goodwill (over Greece)… has all but disappeared,’ said Connor Campbell, financial analyst at Spreadex trading group.
Greece has been trying to negotiate a deal that would unlock 7.2 billion euros ($A9.97 billion) in remaining EU-IMF bailout money that the debt-ridden country needs to avoid default and a possible exit from the euro.
But the government of Greek Prime Minister Alexis Tsipras, elected in January on an anti-austerity ticket, has resisted pressure to continue with a policy of cuts in return for the cash.
On Tuesday, however, Tsipras said he was confident that tough negotiations with his country’s EU-IMF creditors would reach a deal by early May.
‘The Greeks must adapt their expectations to reality,’ Eurogroup chief Jeroen Dijsselbloem warned.
