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Stocks fall amid Greek turmoil

European shares and periphery euro zone bonds tumbled on yesterday after the Greek parliament rejected the government's presidential candidate, setting the stage for an election that anti-bailout party Syriza could win.

Greece's Prime Minister Antonis Samaras (above) failed to get enough support for his nominee, Stavros Dimas, and will now call a national election for January 25.

Stocks in Athens plunged as much as 11pc to a two-year low and yields on government bonds spiked sharply. Italian and Spanish markets also took heavy hits as investors made a dash into ultra-safe German debt.

"A Greek accident has become a potent risk. But mostly for Greece itself," said Holger Schmieding at Berenberg Bank in London.