London - Britain's top equity index fell on Monday, with Rolls-Royce slumping after cutting profit forecasts as Greek voters' rejection of austerity conditions for a bailout impacted European stock markets.
The blue-chip FTSE 100 index fell by less than other European markets, with some traders saying Britain was benefiting from being viewed as a relative “safe haven” away from the problems of the euro zone.
The FTSE was down 0.5 percent at 6,550.67 points, while Germany's DAX fell 1.2 percent the euro zone's blue-chip Euro STOXX 50 index 1.4 percent.
“The British stock market is slightly outperforming given the fact that it is outside of the euro zone, and therefore relatively less exposed to the problems in Greece,” said Securequity sales trader Jawaid Afsar.
Engineer Rolls-Royce was the worst-performing FTSE 100 stock, falling around 9 percent after the company cut its profit forecasts for this year and next, citing continued weakness in oil and gas markets plus lower demand for some of its aero-engine programmes.
The Greek vote on Sunday put the country in uncharted territory, risking a banking collapse that could force it out of the euro. Without more emergency funding from the European Central Bank, Greece's banks could run out of cash within days.
However, the resignation on Monday of outspoken finance minister Yanis Varoufakis potentially removed a major obstacle to a last-minute deal to keep Athens in the common currency zone.
The FTSE 100 has erased gains made over the course of 2015 and is 8 percent below a record high of 7,122.74 points set in April.
Reuters