FTSE slumps again as Greece optimism evaporates

The unresolved Greek debt crisis has put renewed pressure on the FTSE 100 this morning, negating the effects of the rally in supermarkets stocks on back of Tesco's Q1 results.

The FTSE 100 dropped 1% while the FTSE 250 was down 0.7% by 10:00 BST, as economic uncertainty weighed on investor sentiment. Talks between Greece and the European authorities have failed to reach a conclusion, and parties remain in a deadlock over its debt crisis despite the end of June deadline approaching fast. The lack of agreement makes a Greek default on its debt to the International Monetary Fund look increasingly likely, despite the optimism that surfaced at the start of this week. The FTSE has now given up almost all of its gains since the start of the week, despite rallyi...