Eurozone uncertainty continues to plague shaky markets
MOUNTING uncertainty in the eurozone continued to plague European markets today as leaders from the world's wealthiest nations fought for a resolution to the region's debt crisis.
The FTSE 100 Index was more than 1% lower after EU leaders, in Cannes for the G20 summit, told Greece that its referendum on the hard-won rescue deal will decide whether it remains in the eurozone.
German chancellor Angela Merkel and French president Nicolas Sarkozy told Athens it will not receive its next 8 billion euro (£6.9 billion) bailout tranche until the referendum has passed.
Stan Shamu, market strategist at IG Markets, said: "It is certainly crunch time in Europe now with the next few weeks set to be nail-biting."
Germany's DAX was down 2% while the Cac-40 in France was off nearly 3% after the latest developments in Cannes also triggered a weak session in Asia.