European shares drop on further Greek concerns

European shares fell again this morning after France and Germany told Athens last night that it would not receive its next aid tranche until the referendum had passed, sparking fears Greece could default and the crisis could spread to larger economies.

3 November 2011, 12:00am

Investor sentiment took another hit after France and Germany made it clear to Athens that the country will not receive a cent of the next aid package until after the referendum and it decides whether it wants to stay in the eurozone.

Banks were the main focus due to their exposure to sovereign debt, with BNP Paribas among the worst hit, down 4.6 percent, after it reported a bigger-than-expected €2 billion charge on Greek debt.

By 7:05 a.m., the pan-European FTSEurofirst 300 <.FTEU3> index of top shares was down 1.4 percent at 958.53 points.