Markets dive as EU and IMF reach deal on Greece

The EU and IMF have reached a deal on Greece which should prevent a default, but will involve a new round of austerity measures for the beleaguered nation.

Markets across Europe plummeted on the news, with the EUROSTOXX 50 down 1.29%, the CAC 40 1.54% lower and the German Dax down 1.23%. UK shares extended early losses, with the FTSE 100 falling nearly 100 points or 1.7%, to 5,647. Olli Rehn, the EU’s economic commissioner, said the IMF deal will allow international lenders to disburse €12bn to Greece even without an agreement on a new €120bn bailout for Athens, avoiding a default that would have come as early as next month, the FT reports. The IMF had insisted it could not pay its €3.3bn portion of the disbursement without the new b...