Markets down ahead of Greek euro poll

Uncertainty over outcome
Uncertainty over outcome

The London market was lower as anxious traders looked towards Greece’s referendum over its eurozone bailout tomorrow.

Greek prime minister Alexis Tsipras has urged the country to vote against austerity proposals, but EU leaders have warned against rejecting the eurozone.

The FTSE 100 Index was down 44.7 points at 6585.8, and has fallen 168 points over the week as politicians prepare the ground for this crucial vote that could see Greece leave the euro.

Germany’s Dax and France’s Cac 40 were both slightly down.

Trustnet Direct analyst Tony Cross said: “Regardless of the outcome, a degree of volatility on Monday morning seems inevitable - there’s no clean outcome for this.”

He added: “The expectation is that a verdict from Greece may well be released late on Sunday night - what happens beyond that however is another step into the unknown.”

Britain’s dominant services sector grew more than expected last month, bouncing back from pre-election uncertainty in May.

The sector posted a reading of 58.5 on the closely-watched CIPS/Markit purchasing managers’ index (PMI) survey, in which 50 separates growth from contraction. Economists had expected a reading of 57.3, but the news did not greatly impact the pound.