Negotiating teams from the International Monetary Fund (IMF) and the Greek government left Brussels yesterday, with the IMF blaming "major differences" and saying that no deal had been agreed.
A more amiable mood between Greek Prime Minister Alexis Tsipras and European Commission President Jean-Claude Juncker on Wednesday had led investors to think that the Greek debt stand-off had come to an end.
The brief rally enjoyed by holders of Greek equities is now expected to dissolve this morning, after IMF spokesman Gerry Rice said: "The ball is very much in Greece's court."
Mr Rice added: "There are major differences between us in most key areas. There has been no progress in narrowing these differences recently."