INVESTORS abandoned the markets today after the Greek Prime Minister fuelled uncertainty by announcing shock plans to hold a referendum on the eurozone rescue plan.

The FTSE 100 Index opened more than two per cent lower after George Papandreous unexpected move cast fresh doubts on last week's much-heralded proposals to protect Europe from collapsing into recession.

Michael Hewson, analyst at CMC Markets, said if Greece voted against the eurozone deal, the fallout could result in a complete meltdown of the European banking system and throw Europe into turmoil.

Elsewhere, weak manufacturing figures from China raised fears that the Asian powerhouse economy was coming off the boil.