Monday, 26 September 2011

£2.6 trillion Eurozone bailout - Greece to default on debts

The London stock market continued to slide today as traders digested emerging details of a multitrillion-pound eurozone rescue plan.

The FTSE 100 Index was nearly 2 per cent lower as crisis talks between world finance leaders in Washington over the weekend failed to inspire traders.

Emergency measures to rescue the euro, costing two to three trillion euros (£2.6 trillion), and potentially allowing an orderly debt default in Greece, could be revealed in a matter of days.

But Cameron Peacock, market analyst at IG Markets, said: 'The key demand from investors is for action as opposed to words.'

Britain's top 100 companies saw £78 billion wiped from their value last week as the sovereign debt crisis and America's creaking public finances fuelled fears of another global recession.

In Asia markets also fell, with Tokyo's Nikkei 225 down 2.17 per cent.

And in Hong Kong the Hang Seng fell 1.56 per cent, as Australian shares also dropped

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