FTSE dives on Greek concerns

Blue-chip stocks tumbled on Monday as fears of a Greek default intensified and metals prices fell on concerns about the global economic recovery

The FTSE100 was down 2.3% to 5093.59 at 13.37BST with Inmarsat the only stock on the index in positive territory

Concern about the tepid political and monetary policy response to weak growth across the developed world added to the bearish tone following a meeting of G7 finance ministers over the weekend, while China said it would continue to tighten policy as inflation remains too high.

A subsequent weakening in base metal prices hit mining and energy shares with Fresnillo diving 7% to 2000p, making it the worst performer on the index. Antofagsta and ENRC both fell by nearly 5%.

While Greece pledged fresh measures over the weekend to help it meet fiscal targets and secure bailout funds, a hardening in the tone of some German politicians over the possibility of default had unnerved markets.

Banks bounced back after a queasy start following the publication of the Vickers report whose contents were seen as better than expected for the UK industry.

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