The FTSE 100, Britain's top share index, has dropped to a three-month low on Monday (June 15th). The slip in value comes on the back of a broad sell-off in European equities after talks in Greece failed again to reach deal on Sunday – and the Mediterranean country moves one step closer to defaulting on its debts.
By 11:11 BST, the FTSE 100 index was down 0.8 per cent, bringing it to 6,733.80 points. This extended the previous session's losses of 0.9 per cent.
Overall, the FTSE has lost five per cent in two weeks. Reuters reports that in addition to the ongoing difficulties in Greece, another factor that could be pulling it down is that the US Federal Reserve is expected to begin a cycle of rate hikes as early as September.
Greek creditors running out of patience
Commenting on the difficulties in Greece, senior German official Julia Kloeckner said the country was gambling too far and that the patience of creditors was running thin.
"Are we approaching the end-game? It looks highly likely this time around," analyst Chris Beauchamp said.
"Greece has been a handy reason to clear out of stocks over the past few weeks, with Fed-related jumpiness also playing its part," he explained.
On Sunday, talks ended in a deadlock between Greece and its creditors, leaving European lenders frustrated that a debt default could threaten the country's future in the euro.
European Union officials blame the problems on Athens, saying nothing has been done to secure the funding necessary to repay the €1.6 billion (£1.16 billion) owed to the International Monetary Fund by the end of June.
Notable drops in the FTSE 100
Low-cost airline easyJet fell 2.2 per cent after RBC cut its stance on the stock to "underperform" down from "outperform". In a note, RBC analysts told Reuters: "Our positive outlook for easyJet's summer has proved incorrect [...] As summer is key, we see few positive catalysts until mid-2016 while easyJet faces a winter squeeze."
In addition, Standard Chartered dropped 2.9 per cent.
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