Update: FTSE 100 falls to year low on Greece deadlock

The UK's leading share index has fallen to its lowest level this year, slipping below 5,500, as Greece's continued failure to form a coalition government dampens risk appetite.

Last week, Greece's latest attempt to form a coalition government ended in deadlock, with the four main parties divided over how to tackle the country's debt mountain. The stalemate has sparked fresh fears Greece will exit the euro and default on its debt obligations, which this morning led to a broad sell-off in European markets. The FTSE 100 fell 1.7%, or 95 points, to 5,482. This is way off its position in Q1 of this year when it was skirting around the 6,000 mark. The sell-off has been led by the financial sector, with all five UK banks firmly in the red. Lloyds Banking Group i...