Tuesday, May 8, 2012

Shares fall on Greece uncertainty

World stock markets fell on Tuesday as investors worried about Greece's ability to form a new government.

Alexis Tsipras, the leader of the left-wing Syriza bloc, is trying to form a coalition after the centre-right New Democracy party failed to do so.

If successful, Mr Tsipras has said he will tear up the terms of the EU-IMF bailout deal.

European indexes closed lower. London's FTSE 100 fell 1.8%, Germany's Dax shed 1.9% and France's Cac 40 dropped 2.8%.

In New York, the Dow Jones was also trading down more than 1%.

The euro also lost ground for the seventh day in a row, falling against the dollar to $1.30 and to 80.6 pence against the pound. Read More