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London stocks were in the frontline of the fall-out from the vote to leave with FTSE registering over 8 percent losses.
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Investors brushed off increasing worries about Greece`s future in the eurozone after talks between the bloc`s Eurogroup of finance ministers fell apart Thursday.
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The euro slipped about 0.6 percent on the day to $1.1197, and was down 0.5 percent against the yen at 138.27."With no deal in sight, expectations for default and exit are likely to rise sharply in the days ahead," said Elsa Lignos senior currency strategist at RBC.
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"European equities are trading moderately lower this morning after yesterday`s rally had come to an abrupt halt on the back of reports that the IMF has halted negotiations with Greece due to a lack of progress," said analyst Markus Huber at brokerage Peregrine & Black.
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Europe`s main bourses picked after a slow start. The benchmark FTSEurofirst 300 was last up 0.6 percent, as hopes Greece was closing in on a deal with the European Union, International Monetary Fund and European Central Bank. Greek stocks surged 7 percent.
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MSCI`s broadest index of Asia-Pacific shares outside Japan was nearly flat in late afternoon trading, after early dropping to its lowest intraday level since April 7. 
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Frankfurt`s DAX 30 index however fell 0.48 percent to 11,923.02 points, while the CAC 40 in Paris edged up 0.12 percent to 5,034.75 points.
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London`s benchmark FTSE 100 index of top companies was up 0.30 percent at 6,824.51 points in early afternoon trade.
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IMF chief said there was a 35-40% chance of the eurozone slipping back into recession if action was not taken.
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Banks led the losers board in Europe, where London`s benchmark FTSE 100 index was down 0.61 percent at 6,608.78 points in afternoon trade.
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European equities slid on Tuesday as news of a sharp slowdown in eurozone business activity stoked fears over the timid economic recovery.
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Europe`s main stock markets diverged on Thursday in nervous trading, with investors on tenterhooks before an important policy decision by the ECB in Frankfurt.
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London`s benchmark FTSE 100 index inched down 0.04 percent to 6,630.28 points and Frankfurt`s DAX 30 dropped 0.15 percent to 9,166.92. 
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London`s benchmark FTSE 100 index fell 0.14 percent to stand at 6,627.07 points approaching midday in the British capital.
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Deflation is such a threat that the European Central Bank has moved into negative interest rates to get cash flowing.
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Europe`s stock markets weakened at the open on Friday, with London`s benchmark FTSE 100 index down 0.21 percent at 6,793.75 points.
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Asian markets turned mixed on Friday as investors offered only polite applause for the European Central Bank`s latest stimulus package.






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