On Tuesday (June 30th), the FTSE 100 fell towards five-month lows and around the world, markets were weighed down by worries over the Greek crisis.
The blue-chip FTSE 100 index closed down 99.5 points, or 1.5 per cent, at 6,520.98 points. This is nearing its lowest level since late January and came on the back of a two per cent drop on Monday. It is also about eight per cent lower than the record high it reached in April (7,122.74 points) – the latest drop also means gains previously made in 2015 have effectively been 'erased', reports Reuters.
Commenting on the ongoing difficulties in Greece, analyst Harry Shann said: "It's one of the biggest hurdles that the eurozone has faced. We could see the FTSE fall down to 6,400 points this week."
Big losers included insurance company Standard Life, which fell 1.7 per cent and RBC downgraded the company's stock to "underperform" from a previous rating of "sector perform".
Supermarkets also fared poorly in the index. Tesco dropped 2.3 per cent and Sainsbury fell 1.8 per cent. Industry data indicated that both companies had suffered a fall in sales, according to Reuters.
However, shares in Ocado gained 3.7 per cent following the release of the company's latest results. The supermarket delivery company reported pre-tax profits of £7.2 million for the half-year to May 17th. This was slightly down from a year earlier (£7.5 million) but gross sales were up 15.7 per cent to £511.9 million.
At the close of the day, Germany's Dax index had fallen 1.25 per cent, while the French Cac 40 index dropped 1.6 per cent.
The euro declined 0.8 per cent against the dollar to $1.1148. On Monday, the euro had fallen to a four-week low of $1.0955, although it recovered to above the $1.12 mark before beginning to drop again.
The pound has also gone up 0.85 per cent against the euro to €1.4111. However, it has dropped against the dollar to $1.5719.
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.