U.K. Stocks Fall Third Day as Investors Watch Greek DevelopmentsAlan Soughley
U.K. stocks declined for a third day as investors watched developments in the Greek debt crisis and euro-area leaders prepared to meet later in the day.
The FTSE 100 Index fell 1.6 percent to 6,432.21 at the close of trading in London. U.K. equities slid Monday along with European peers after Greek voters rejected creditors’ austerity demands. The FTSE All-Share Index lost 1.5 percent today, and Ireland’s ISEQ Index retreated 0.9 percent.
German Chancellor Angela Merkel warned Monday that “time is running out” as she and French President Francois Hollande met to respond to the Greek referendum. Pressure is increasing on Greek Prime Minister Alexis Tsipras to prove he can secure a deal with creditors who are demanding tax hikes and spending cuts as the price for a new bailout of Europe’s most indebted nation.
Greece will put proposals in writing, in a first step toward restarting aid talks, and euro-area finance chiefs will hold a conference call Wednesday morning to discuss the request, Dutch Finance Minister Jeroen Dijsselbloem said today.
Mining stocks tumbled after a selloff in Chinese equities sparked a rout in commodities. Glencore Plc slid 6.9 percent, Rio Tinto Group dropped 3.3 percent and BHP Billiton Ltd. lost 2.8 percent.
Among stocks moving on corporate news, Weir Group Plc fell 5 percent after agreeing to buy Michigan-based Delta Industrial Valves Inc. for an initial consideration of $37 million.
Rolls-Royce Holdings Plc dropped 5.4 percent after JPMorgan Chase & Co. cut its rating on the engine maker to underweight, similar to sell.
Marks & Spencer Group Plc retreated 2.2 percent after the retailer reported a decline in first-quarter clothing sales.