UK stocks volatile after Greek election

At the beginning of the session, the FTSE 100 index traded as high as 5,555.32 and then traded 0.2 percent higher at 5,490.92.

Losses were tracked across the European financial sector as banks weighed most heavily on the index.

After Greece’s election resulted in its winner ‘New Democracy’, fears were eased from a Greek exit of the euro or an eventual breakup of the single currency.

Later on in the session, pressure returned to financial markets as investors then focused on the ongoing problems in Spain as yields on 10-year government bonds increased above the psychologically important level of 7 percent.

Among the British banks, Lloyds Banking PLC slipped 2.4 percent, Royal Bank of Scotland Group PLC dropped 1.7 percent and Barclays PLC shed 1.1 percent.

Various miners were also falling, as the metal prices were mixed. Xstrata PLC decreased by 2 percent, Kazakhmys PLC gave into 1.3 percent and Vedanta Resources PLC fell back 1.3 percent.

Overall, the British market remains fragile as the fate of its economy lies with the security of the eurozone. The British Chancellor, George Osborne suggested last week that the UK economy may not improve unless Greece exits the single currency.

BGH/MOL/HE

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