Greek markets plunge after defiant PM\\\'s speech

LONDON, Feb 9 (Reuters): Greek financial markets sank further on Monday after Prime Minister Alexis Tsipras made a speech showing little intention of sticking to the terms of the international bailout keeping Greece afloat.

Other European markets also felt some limited selling pressure due to concerns about Greece, which had its credit rating cut by Standard & Poor's on Friday.

An index of Greek banking stocks fell almost 10 per cent close to record lows, pushing the Athens bourse's main index nearly to the lowest levels since the country's 2012 debt restructuring. Government bond yields  rose by up to 3.7 percentage points, with three year yields nearing 22 per cent.

Having returned home empty-handed from a week-long European tour in search for allies, Tsipras laid out a list of measures to reverse the austerity imposed by the European Union and the International Monetary Fund and vowed not to extend the current bailout deal.

Addressing parliament for the first time after his hard left Syriza party won elections last month, he said he would instead seek a bridge loan in the next two weeks to keep Greece afloat.

"The possibility of Greece leaving the euro zone has increased with this speech from 35 per cent to 50 per cent," said Gary Jenkins, chief credit strategist at LNG Capital.