(MENAFN- AFP) European equity markets slid Friday on the final day of a Group of Seven finance meeting, which has been largely overshadowed by festering concerns over Greece, dealers said.
Investors are increasingly worried that Greece and its creditors will not reach an agreement on reforming its bailout and could struggle to meet looming debt repayments next week, they added.
In late morning deals, London's benchmark FTSE 100 index of top companies slid 0.07 percent to 7,035.60 points, Frankfurt's DAX 30 sank 1.05 percent to 11,554, and the CAC 40 in Paris dropped 1.0 percent to 5,086.20 points compared with Thursday's close.
The European single currency meanwhile firmed to $1.0964 from $1.0947 late in New York on Thursday.
"Traders will now closely monitor the continuing three day G7 talks looking for any clues to get a clearer perspective on Greek debt situation which continues to shackle European markets," said dealer Farbod Mimeh at trading firm London Capital Group.
Greece's fate in the euro area continued to cast a shadow over Group of Seven finance ministers meeting in Dresden Friday -- with still no sign of a deal.
While Greece is not officially on the agenda of the Dresden meeting -- which is preparing for a wider summit of G7 leaders starting on June 7 -- the issue was at the top of everyone's minds.
Athens' coffers are empty and the Greek government under Prime Minister Alexis Tsipras has said it has "no money" to make a series of repayments to the IMF that are due beginning June 5, totalling 1.6 billion euros ($1.75 billion).
- Fresh fears over repayment -
"European markets continued to feel the ongoing effects of the situation in Greece, with fresh fears that the country will be unable to make yet another repayment due to the IMF," said analyst Daniel Sugarman at traders ETX Capital.
"The Greek government has still not made it clear how it intends to make the 1.6-billion-euro repayment, the first tranche of which falls due next Friday."
Athens is negotiating to unlock some 7.2 billion euros in bailout cash with creditors -- the IMF, the European Union and the European Central Bank.
While Greece is hopeful it could reach a deal by Sunday, its creditors are more sceptical.
"European equity markets are rattled as discussions over Greece's finances rumble on," said IG analyst David Madden.
"It's the last trading day before the end of May deadline for Greece, and traders are not takings any chances. Until we have some clarity about a deal being struck, dealers will always fear for the worst."
On Thursday, IMF chief Christine Lagarde -- who is attending the meeting -- indicated that a "Grexit", or Greek exit from the euro, was "a potential" outcome.
Across in Asia on Friday, Japan's Nikkei chalked up an eleventh straight gain -- its best rally since February 1988 -- as the yen sat around 12-year lows against the dollar, while Shanghai extended losses following the previous day's hefty plunge.
Sydney jumped 1.12 percent and Seoul added 0.19 percent.
Shanghai -- which slumped 6.50 percent Thursday -- ended 0.18 percent lower after a volatile day that saw it swing from a 4.08 percent loss and a 1.69 percent gain. Hong Kong slipped 0.11 percent.
Wall Street's three main markets ended lower Thursday, spooked by worries about Greece's long-running debt talks as well as China's heavy sell-off.
The Dow dipped 0.20 percent, the S&P 500 shed 0.12 percent and the Nasdaq lost 0.17 percent.
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