U.K. equities declined along with European peers after after Greek voters rejected creditors’ austerity demands.
The FTSE 100 Index slid 0.8 percent to 6,535.68 at the close in London, extending last week’s decline of 2.5 percent.
The FTSE All-Share Index lost 0.8 percent, and Ireland’s ISEQ Index fell 1.5 percent.
Greece’s creditors turned up the heat on Prime Minister Alexis Tsipras to come up with a plan to stay in the euro. Yanis Varoufakis quit as finance minister citing a “preference” among creditors for him to not be further involved in bailout talks. His move follows a vote where a larger-than-forecast 61 percent of Greeks chose not to accept terms set by creditors in exchange for financial aid. Greece’s exit from the currency union is now the base-case scenario, JPMorgan Chase & Co. said.
Rolls-Royce Holdings Plc tumbled 6.3 percent to the lowest since October after cutting its full-year profit guidance and halting a share buyback to preserve cash. Banking and financial shares also fell, with Royal Bank of Scotland Group Plc and Barclays Plc retreating at least 1.6 percent.