Footsie’s attempted rally proved short-lived and investors are back in panic mode over Greece.
Like a film sequel no one wanted to see, the state of the Greek economy and the possibility of contagion throughout the Eurozone has returned to disturb investors.
Concerns over the bailout programme for the country, scheduled to end this year, were behind yesterday’s market shake-out in Europe, with interest rates on Greek debt rising sharply.
Having initially risen 70 points or so early on today, the FTSE 100 subsequently dug itself into a hole 111 points deep at 6,101.
Leading the retreat was Irish pharmaceutical company Shire (LON:SHP), down another 9% to 3,648p as US pharma giant AbbVie said it would now recommend shareholders vote down its proposed takeover deal.
Changes to the tax inversion rules rushed through last month by President Obama killed the deal, AbbVie said, as they made a nonsense of the £32bn it had agreed to pay.
Shares in Shire lost more than one-fifth of their value yesterday when news of AbbVie’s change of heart first emerged.
As markets plunge, risk-averse investors look to shift their holdings into precious metals and, as a proxy, into gold and silver miners such as Randgold and Fresnillo, the two best performing blue-chips today.
What little cheer there was to be found came from special situations, such as Karelian (LON:KDR), up 64% after sparkling laboratory results from a sample collected on the company's Riihivaara target in the Kuhmo region of Finland.
Armadale Capital (LON:ACP) put on a spurt, rising 9.7%, after it secured flexible funding of up to US$2.73 million to support the development of its Mpokoto Gold Project, located in the Democratic Republic of Congo.
The increasingly inappropriately named Red Rock Resources (LON:RRR) rolled 8.6% higher as it revealed that Cloud Lands Digital Fortress - the firm that Red Rock's associate Resource Star (ASX:RSL) is planning to buy - has been boosted by two new agreements with Japanese IT behemoth, Fujitsu.
It was a case of “after the Lord Mayor’s show” for music streaming specialist 7Digital (LON:7DIG) after the shares shot up on Monday on reports that it will be providing the music service for a new product to be launched by music maestro will.i.am.
Shares came back 19% today as the company said the deal will underpin revenue expectations for the current year but is not expected to have analysts who follow the stock scurrying to revise their earnings estimates.