London’s FTSE 100 shed more 82 points, 1.18%, to close Tuesday at 6,948.
It was a struggle of a day for the rest of Europe too, with the DAX and CAC also moving lower due to renewed Greece concerns.
Greece remains in negotiations with its creditors, but finance minister Yanis Varoufakis continues to cause problems, most recently blaming the creditors for the situation the country finds itself in.
The chances of the country defaulting on its payment to the IMF next month are becoming scarily likely and the sentiment has caused uncertainty across Europe.
On the other side of the world Chinese markets was actually much stronger, hitting seven year highs, however, in the US investors on Wall Street pessimistically kept its eyes on Europe.
The Dow Jones was down around 170 points, 0.9%, at about 18,065, while the S&P 500 lost 0.88% and the NASDAQ slid just over 1%.
News that John Malone’s Charter Communication, America’s fourth largest cable firm, had agreed a US$55bn deal to buy Time Warner (the second largest in the sector) was the standout feature of New York’s day.
Closer to home, Royal Mail (LON:RMG) led London’s risers as it received an upgrade from broker Cantor Fitzgerald to ‘hold’ from ‘sell’.
Budget airline Ryanair (LON:RYA) beat expectations as it reported a 66% hike in profits. Shares took off today, rising 6% to 11p.
In small caps, Premier African Minerals (LON:PREM) expects to produce concentrate from its flagship RHA tungsten project by the end of the first week of June. Shares jumped 18%.
Shares in Scottish gold explorer Scotgold (LON:SGZ) rose by 14% to 0.7p on news of a hefty reserve upgrade at the site at Cononish.
Range Resources (LON:RRL) told investors it has signed up to a conditional new funding deal worth up to US$35mln. Shares rose 5% to 0.5p.
Meanwhile, Metal Tiger (LON:MTR) is still waiting on cash from its recent trades in New World Oil & Gas (LON:NEW). Shares eased 9% to 0.98p as it appears it may take some time before it receives the money it is owed.
Fred Krueger, executive chairman and co-founder of Minds + Machines (LON:MMX) is stepping down, having steered the Internet company to a fully-fledged operating entity. Shares fell 12% to 9p on the news.