Mon close: Grexit looms over markets

Stocks fell to a three-month low as a Greek exit from the Eurozone loomed over trading desks.

The FTSE 100 was down 1.1% to 6,710.52, with travel stocks among the worst performers by the end of trade. Just four stocks among the leading index finished in positive territory.

Time is now running out for Athens as it faces a €1.6bn debt repayment to the International Monetary Fund at the end of the month.

ECB president Mario Draghi said the “ball lies squarely in the camp of the Greek government” and called for a “strong and comprehensive agreement” between Athens and its creditors. “We need this very soon,” he said.

Investors were also showing caution ahead of Wednesday’s policy meeting at the Federal Reserve, which is expected to offer some indications on whether a rate hike could be on the cards in September.

Airline conglomerate IAG was among those out of favour, along with cruise operator Carnival and travel tour operators TUI and Thomas Cook.

Housebuilding stocks were also registering losses, including Taylor Wimpey, Barratt Developments and Crest Nicholson.

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