10.15: The Footsie eased off its worst levels but still remained severely depressed as the morning session progressed as Greece moved a step closer to a debt default and a possible exit from the euro, with travel and tourism stocks the worst off in London.

By mid morning, the FTSE 100 index was down 105.7 points, or 1.5 per cent at 6,648.0, having dropped around 2 per cent at open.

In Europe, Germany’s Dax 30 index and France’s CAC 40 index were both down over 3 per cent, after Greece closed its banks for the week as it prepared for a referendum on the latest bailout deal put forward by its creditors, with the Athens stock markets also to be shut all week.