The FTSE 100 is off nearly 1% as it emerges that the Athens administration might run out of funds when the second bailout scheme comes to an end in 2014. Greek finance minister Yannis Stournaras is hoping to renegotiate the country’s bailout terms, as the current austerity measures are crippling the country – Greece is on track for its sixth year of negative growth.
London-listed banks are in the red as traders are concerned about the level of exposure they have to indebted eurozone countries. The mining sector is also lower after Chilean copper miner Antofagasta announced a 12% decline in first-half revenue. Weaker metal prices impacted on earnings and its share price is currently down 2%.
Security company G4S is up 1.6% after its second largest investor Cevian Capital doubled its stake in the company to 10%. Retailers Next and Marks & Spencer are both higher today after being upgraded by Bank of America and Citigroup respectively.
In the US, we are expecting the Dow Jones to open 86 points lower at 14,860. If Washington increases the US debt ceiling, which be reached in October, the US’ credit rating could be downgraded.