Markets slide further as Greek default fears resurface

US markets posted heavy losses for the second successive day of trading, amid fears Greece is set to default on a €5bn debt payment due next week.

According to the FT, Greece, which was granted a €174bn bailout by the European Central Bank, is struggling to meet the €5bn debt obligation. With Greece stalling, eurozone leaders now face a new round of brinkmanship on how to reduce Greece's sky-high debt levels. Coupled with fears over the fiscal cliff in the US, investors moved to take profits for a second day, with the Dow shedding 120 points or 0.94% to close at 12,811 overnight. The fall left it at a three-month low. Meanwhile, the S&P 500 fell 1.22% to 1,377, one of its biggest one-day declines year to date. As well as w...