FTSE tumbles as Grexit draws nearer

Risk assets have regained some ground but equities remain deep in the red after a tumultuous weekend in Greece saw it impose capital controls after calling a surprise referendum over creditors' final bailout demands.

Greece’s Friday evening decision to call a referendum for 5 July set in motion a chain of events which culminated with Sunday’s announcement that its banks will remain shut for at least a week in order to prevent capital flight. The developments make a Greek exit from the eurozone more likely than ever before, analysts suggest, and have prompted sharp moves across a variety of asset classes. In the UK, the FTSE 100 dropped 2.2% at the open to 6,611, its lowest level since mid-January, before paring those loses to stand 1.6% lower as of 09:15 BST. Falls were more pronounced in Europ...