Markets rocked by Greece crisis

Stock markets have seen big falls after Greece’s negotiations with creditors broke down over the weekend, leading to the country imposing capital controls and closing banks.

The European Central Bank refused to extend emergency funding to the indebted nation, leading to concern it will default on its next debt payment and become the first country to leave the eurozone.

London’s FTSE 100 was down 1.7 per cent as European markets suffered even bigger losses.

Germany’s Dax and the French Cac index both shed more than three per cent as investors sought safety.

Bond yields on Greek, Spanish and Italian government bonds spiked while the yield on German bonds fell.

On the currency market, the euro slid to its lowest in more than seven years against the pound and was trading around a four-week low versus the dollar.

Greece is due to make its next payment to the International Monetary Fund on Tuesday, while a referendum on proposed bailout terms for the country is to be held on July 5th.

Jean-Claude Juncker, the president of the EU commission, said he is "deeply saddened" by the turn of events but commentators say a last-ditch deal could yet be reached.