Monday 18 December 2017

Greece rescue vote plan hits shares

Jamie Grierson

INVESTORS abandoned the markets today after the Greek Prime Minister fuelled uncertainty by announcing shock plans to hold a referendum on the eurozone rescue plan.

The FTSE 100 Index opened more than 2pc lower after George Papandreou's unexpected move cast fresh doubts on last week's much-heralded proposals to protect Europe from collapsing into recession.

The ISEQ index of Irish shares was 2.7pc off while both France’s CAC and Germany’s DAX dropped more than 2.5pc.

Michael Hewson, analyst at CMC Markets, said if Greece voted against the eurozone deal, the fallout could result in "a complete meltdown of the European banking system and throw Europe into turmoil".

Elsewhere, weak manufacturing figures from China raised fears that the Asian powerhouse economy was coming off the boil.

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