Europe: Shares set for biggest weekly drop in two months, Greece in focus

[LONDON] European shares edged down towards their biggest weekly fall in two months on Friday, with focus on a crucial vote in Greece over its debt negotiations at the weekend.

The FTSEurofirst 300 was down 0.2 per cent at 1,524.75 points by 0707 GMT, down 3.1 per cent for the week and set for its biggest weekly fall since late April.

The market has been hit by concern over mounting tensions between Greece and its international creditors since Greece announced a surprise referendum over its bailout programme. Set to take place on Sunday, the two campaigns are finely balanced. "Attention will be pinned on Greece and this is likely to see investors cautious as we head into the weekend," Stan Shamu, market analyst at IG, said.

Fiat Chrysler Automobiles NV dropped 1 per cent after a senior executive with the automaker said it has fallen short on the execution of auto safety recalls. A US regulator said Fiat Chrysler could face action on its performance as soon as this month.

REUTERS