European stocks slide on Greek-eurozone impasse

"Until markets see some solid plans put in place to deal with Greece, the markets are only going to be heading in one direction," said Spreadex sales trader Simon Furlong.

London's benchmark FTSE 100 index of top shares dipped 0.92 percent and Frankfurt's DAX 30 sank 1.13 percent. In Paris, the CAC 40 index slid 1.38 percent, after the opening was delayed by a technical glitch.

And Milan's MIB index dived 2.31 percent after Moody's issued a warning about Italy's credit rating, sparking concern about contagion effects from Greece.

"A new week, a new twist in the Greek sovereign saga," said research director Kathleen Brooks at trading site Forex.com.

"This time there is a risk that the next tranche of bailout funds -- the 12 billion euros ($17 billion) from the first bailout fund -- won't be met unless the Greek parliament manages to pass 28 billion euros of austerity measures and privatizations.

"The impasse at the finance ministers' meeting is weighing on the euro and on stocks," she added.

Europe promised on Monday to unblock existing bailout loans for Greece and draw up a second financial rescue as long as its parliament approves fierce new budget cuts and a raft of asset sales.

After seven hours of talks aimed at averting Greek default and fears of a domino effect across their shared currency area, eurozone finance ministers said they and the IMF would release 12 billion euros of loans in "mid-July" once Greek lawmakers did their bit.

"I would say that this added to uncertainty," added Brooks.

"It is reminding us that the first hurdle for Greece is to secure the next tranche of bailout funds."

In Milan, share prices dived after a timely warning from Moody's over the weekend.

Banking stocks were among the worst affected, with shares in Intesa San Paolo dropping 2.42 percent and UniCredit plunging 2.36 percent.

"Italy's has come under fire over the weekend as Moody's issues a warning that its credit rating could be deteriorating, sparking further fear with investors as worries of contagion spreads across Europe," added Furlong.

Asian stock markets were mixed on Monday as earlier gains were pared by concerns that Greece's crisis will not likely be resolved in the near future.

Copyright AFP (Agence France-Presse), 2011