Stock markets across Europe suffer steep falls in early trade on Monday as the Greece debt crisis intensifies amid a swathe of capital controls imposed by Greek leaders and calls for a referendum on bailout terms. French, German and Spanish stock markets all start the week's trading deep in the red, while the EU-wide Euro Stoxx 50 index slumps close to 3.5%, just about keeping its head above the 3,500 mark.

The declines are not quite as sharp in London but the benchmark FSE 100 index fails to escape the widespread sell-off, falling more than 1.8% to 6,658, having touched a low of 6,598.64 early on. The index has not fallen below the 6,600 mark since mid-January.

Large cap banks lead losers in Europe, with Deutsche Bank (0H7D), Santander (SANQ) and BNP Parbas (0HB5) all down more than 5%, while UK banks are also under pressure. But the steepest faller in London on Monday is inevitably travel group TUI (TUI) in the wake of the tragic shooting in Tunisia.

Only mining groups Randgold Resources (RRS) and Fresnillo (FRES), plus engineer Weir (WEIR) make any positive ground at all among blue-chips.

Investors lose patience with tool and equipment rental specialist HSS Hire (HSS), selling the stock 26% lower to 135p in early trade. Second quarter performance is marginally below expectations, though organic revenue growth is 'in the high single digits', according to a trading statement. Adjusted earnings before interest, tax, depreciation and amortisation will be flat year-on-year. Losses since its February initial public offering (IPO) are now 36%. Industry peers Speedy Hire (SDY) and Ashtead (AHT) sell off in sympathy, down 4.1% and 2.6% respectively.

Among the bigger movers, small cap miner Xtract Resources (XTR:AIM) retreats 11.8% to 0.3p, the same amount by which a chunk of new shares have been priced in a share placing. It has raised £4.4 million to buy a near-term production gold mine which used to be owned by Pan African Resources (PAF:AIM), the business which used to be run by Xtract's CEO Jan Nelson.

A week after its share price doubled on news of major joint venture, miner Savannah Resources (SAV:AIM) retreats 9.7% after raising £550,000 in a discounted share placing. This is despite the small cap last week saying it didn't need to raise any money.

Management services minnow Progility (PGY:AIM) is among the biggest AIM losers, crashing 34% to 3.63p as it warns that the last leg of trading this year is expected to be disappointing with EBITDA, after central costs, markedly below expectations.

Auto technology maker Transense Technologies (TRT:AIM) is also sharply down as it seeks to raise a total of £3 million from investors at a huge 29% discount to Friday's 2.12p close, at 1.5p. The stock slumps 23% to 1.62p in response.

Elsewhere, several small cap resources groups come under pressure. Kurdistan oil producer Gulf Keystone Petroleum (GKP) falls 10% to 36p despite announcing it is maintaining output of 40,000 barrels of oil per day. A recently adopted ‘diversified marketing strategy’ sees the crude sold domestically as well as via trucked exports to Turkey’s coast. Payments totalling $9.8 million were received for domestic deliveries, GKP says it had $68.7 million of cash as of 26 June.

Indian unconventionals play Oilex (OEX:AIM) slumps 16.9% to 2.81p as it shifts back slightly a target to become cash flow positive and announces first gas sales from its Cambay field. Previously chief executive Ron Miller had told Shares it would hit this point in the 'latter part of 2015' but today it says this will happen at the end of the year.

LGO Energy (LGO:AIM) slumps 10% to 3.05p as it says testing continues successfully on well GY-674 and work is under way on well GY-673. Testing on well GY-672 will commence once those operations have been completed.

Palm oil plantations play Anglo-Eastern Plantations (AEP) cheapens 3% (18.5p) to 600p on a cautious AGM update. This flags a decline in total crude palm oil (CPO) production and news Indonesian plantings were behind schedule over the opening five months of 2015. For more on Anglo-Eastern, read Shares feature on the plantations sector here.

Brain health specialist IXICO (IXI:AIM) holds steady at  22.5p despite winning clinical trial contracts from two large pharmaceuticals. The financial details of the projects, which focus on imaging data for cancer and a rare neuro-degenerative disease, have not been disclosed.

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Issue Date: 29 Jun 2015