UK stock market ‘less exposed to Greek crisis’

Greece's former Finance Minister Yanis Varoufakis (AP Photo/Geert Vanden Wijngaert)
Greece's former Finance Minister Yanis Varoufakis (AP Photo/Geert Vanden Wijngaert)
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BRITAIN’S top equity index fell today, although it outperformed continental European indexes, which were hit harder by uncertainty over the economic fallout from Greece’s rejection of bailout conditions.

The benchmark FTSE 100 index closed down 50.1 points, or 0.8 percent, at 6,535.68.

“The British stock market is slightly outperforming given (it is) relatively less exposed to the problems in Greece,” Securequity sales trader Jawaid Afsar said.

The FTSE 100 has erased gains made over the course of 2015 and is some eight per cent below a record high of 7,122.74 points set in April. Investor confidence has been undermined in part by uncertainty over Greece. Greeks’ ‘No’ vote risks a banking collapse that could force the country out of the euro. Without more emergency funding from the European Central Bank, Greece’s banks could run out of cash within days. Many banks now assume that Greece is likely to leave the euro. However, some investors said the resignation of finance minister, Yanis Vaorufakis, showed that the government was willing to compromise.

“There’s the sign of some flexibility from the Greek side, and with Varoufakis resigning, it’s a signal to Europe that it’s not necessarily the case that Greece will leave the euro,” Julius Baer head of research, at Christian Gattiker, said.