FTSE tumbles as Grexit draws nearer


Risk assets have regained some ground but equities remain deep in the red after a tumultuous weekend in Greece saw it impose capital controls after calling a surprise referendum over creditors' final bailout demands.

Greece’s Friday evening decision to call a referendum for 5 July set in motion a chain of events which culminated with Sunday’s announcement that its banks will remain shut for at least a week in order to prevent capital flight. The developments make a Greek exit from the eurozone more likely than ever before, analysts suggest, and have prompted sharp moves across a variety of asset classes. In the UK, the FTSE 100 dropped 2.2% at the open to 6,611, its lowest level since mid-January, before paring those loses to stand 1.6% lower as of 09:15 BST. Falls were more pronounced in Europ...

To continue reading this article...

Join Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now


Already an Investment Week


More on Economics

European-focused investment grade and high yield credit have highest inflows since April 2020.

Fixed income dominates ETF flows in July

Accounted for $32.5bn

clock 08 August 2022 • 2 min read
Investors look away from energy intensive sectors such as chemicals, metals and manufacturing.

'An investor's worst nightmare': Energy rationing spells greater chaos for supply chains

Business confidence falls

clock 05 August 2022 • 5 min read
Bank of England governor Andrew Bailey

Bank of England gilt sales 'unlikely to upset markets too much'

Central bank raises rates to 1.75%

clock 04 August 2022 • 3 min read