Greece Bans Short-Selling as Stocks Suffer Worldwide

On Tuesday, Greek bank shares fell 9% amid continued concern over Greece's public finances. Photo by greekshares.com

Greek regulators have announced a ban on short-selling on Greece's stock market, following steep falls in bank shares.

The ban is designed to prevent investors betting on falls in share prices - believed to undermine confidence in the market.

On Tuesday, Greek bank shares fell 9% amid continued concern over Greece's public finances.

The move also follows big falls in Asian markets on Wednesday, the BBC reported.

Japan's leading share index, the Nikkei 225, closed down more than 2.5% after steep falls in European stocks on Tuesday.

Shortly after opening on Wednesday, stock markets in Frankfurt and Paris were both down by a further 0,5%.

The short-selling ban, designed to stabilize the market, only affects stocks listed in Greece, however.

Global shares have tumbled after the credit rating agency Standard and Poor's downgraded Greek debt to "junk" on Tuesday.

That means the rating agency views Greece as a much riskier place to invest, and increases the interest rate investors will charge the Greek government for loans.

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