London - Intensifying anxiety over Greece sent European stock markets
lower on Tuesday, with the new government set on a collision course
with creditors over plans to renegotiate its enormous bailout, analysts
said.
London's benchmark FTSE 100 index of top companies fell
0.43% to 6 823.10 points, as investors also digested data showing
Britain's economic growth slowed to 0.5% in the fourth quarter of 2014.
Elsewhere, Frankfurt's DAX 30 shed 0.58% to 10 735 and the CAC 40 in Paris lost 0.66% to 4 644 points compared with Monday's close.
The Athens stock market plunged by another 2.81%, having tumbled 3.2% the previous day on news that anti-austerity party Syriza won the Greek election over the weekend.
However, Europe's main indices had mostly risen on Monday, shrugging off fears of a Greek eurozone exit or so-called Grexit.
Later on Tuesday, New Greek Prime Minister Alexis Tsipras will unveil his anti-austerity coalition administration, bringing together his radical left-wing party with the nationalist right, after a stunning election win that sent shockwaves through Europe.
Greece 'leaving behind austerity'
Tsipras
declared Sunday that Greece is "leaving behind disastrous austerity"
and the so-called troika of creditors "is finished", in reference to the
country's international lenders the European Union, the International
Monetary Fund and the European Central Bank.
"The Greek elections might be over but markets remain preoccupied with what the new government will do next, conscious that a stern test of the eurozone's commitment to stay together could be just round the corner," said analyst Connor Campbell at trading firm Spreadex.
He added: "Syriza appear to be creating a 10-minister cabinet that is diametrically opposed to what (the) troika and the eurozone would want from Greece, and the reality of this is finally making itself felt on the markets today."
In foreign exchange activity on Tuesday, the European single currency rose to $1.1307 in London deals on Tuesday, having hit Monday an 11-year low of $1.1098 on fears Greece could leave the eurozone.
Elsewhere, Frankfurt's DAX 30 shed 0.58% to 10 735 and the CAC 40 in Paris lost 0.66% to 4 644 points compared with Monday's close.
The Athens stock market plunged by another 2.81%, having tumbled 3.2% the previous day on news that anti-austerity party Syriza won the Greek election over the weekend.
However, Europe's main indices had mostly risen on Monday, shrugging off fears of a Greek eurozone exit or so-called Grexit.
Later on Tuesday, New Greek Prime Minister Alexis Tsipras will unveil his anti-austerity coalition administration, bringing together his radical left-wing party with the nationalist right, after a stunning election win that sent shockwaves through Europe.
Greece 'leaving behind austerity'
Tsipras
declared Sunday that Greece is "leaving behind disastrous austerity"
and the so-called troika of creditors "is finished", in reference to the
country's international lenders the European Union, the International
Monetary Fund and the European Central Bank."The Greek elections might be over but markets remain preoccupied with what the new government will do next, conscious that a stern test of the eurozone's commitment to stay together could be just round the corner," said analyst Connor Campbell at trading firm Spreadex.
He added: "Syriza appear to be creating a 10-minister cabinet that is diametrically opposed to what (the) troika and the eurozone would want from Greece, and the reality of this is finally making itself felt on the markets today."
In foreign exchange activity on Tuesday, the European single currency rose to $1.1307 in London deals on Tuesday, having hit Monday an 11-year low of $1.1098 on fears Greece could leave the eurozone.
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