European markets nervous ahead of EU crisis summit
Published 21/07/2011 | 10:41
Eurozone markets remained nervous today ahead of a Brussels summit. Investors are concerned the summit will not go far enough to save the euro from ruin even after an earlier eleventh hour meeting where France and Greece reached a deal on a second Greek bailout.
Chancellor Angela Merkel and French president Nicolas Sarkozy met for eight hours yesterday ahead of the meeting of eurozone leaders and it is understood they agreed a deal whereby bank Greek bank creditors will take a hit.
Jean-Claude Trichet, the ECB president, also attended part of the meeting.
The euro hung on to earlier gains, trading at $1.460 having gained mid-week of hopes of a deal.
London's FTSE 100 index of top shares dropped 0.46pc to 5,826.78 points morning deals.
Frankfurt's DAX fell 0.68pc to 7,172.34 while in Paris the CAC 40 lost 0.49 percent to fall to 3,736.35.
The aim of the summit is to provide Greece with a second bailout and halt contagion by levying a tax on banks in the eurozone,
Both France and Greece are opposed to burning bondholders and many others agree with this stance because many European banks are still undercapitalised.
Analysts also said it would be difficult to save Greece without a default, at least temporarily.