Greece crisis: markets begin to tumble as investors flee

Shah Shatranj

Chief Minister (5k+ posts)
Greece crisis: markets begin to tumble as investors flee

US stock futures and the euro fell almost 2% in early Asian trade on Monday as Greece looks set to default on its debt repayment this week, forcing Athens toimpose capital controls to halt bank runs.

On Monday morning Greeks will find their savings blocked and their banks closed for a week following a weekend that has shaken Europe’s single currency. The Athens Stock Exchange will not open on Monday either.

The euro fell as much as 1.9% to $1.0955, its lowest level in almost a month. Against the yen, the common currency dropped more than 3% to 133.80 yen, a five-week low.

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Greece crisis deepens as banks close for a week after weekend that shook euro

US stock futures dived 1.8%, hitting a three-month low, while US Treasuries futures price gained almost two points.
Asian shares look set to open lower, despite the Chinese central bank’s monetary easing on Saturday, as investors are seen flocking to safer assets on the spectre of an unprecedented debt default by a eurozone country.

The US Treasury secretary, Jack Lew, stressed the need for Greece “to take necessary steps to maintain financial stability” ahead of the referendum.

He told the Greek prime minister, Alexis Tsipras, on Sunday that Athens and its creditors needed to continue working toward a resolution ahead of a Greek referendum on 5 July on the creditors’ demands for austerity.

A cash-strapped Greece looks certain to miss its debt repayment on Tuesday as Greece’s European partners shut the door on extending a credit lifeline after Greece’s surprise move to hold a referendum on bailout terms.

Fear of an imminent default by Greece hit Greek banks, a major buyer of Greek government bills, triggering bank runs at weekend and forcing the prime minister Alexis Tsipras to announce a bank holiday on Monday and capital controls.

In a brief, televised address to the nation, Tsipras threw the blame onto the leaders of the eurozone. But he did not say how long the banks would remain shut, nor did he give details of how much individuals and companies would be allowed to withdraw once they reopened.

All over Athens people queued at cash machines, particularly outside National Bank branches because the National Bank supplies the banknotes, and lots of other Greek banks, by midnight on Sunday, had no more of those.

Alexis Tsipras addresses the nation.Other European banks have limited exposure to Greece.

Any speculative selling in debts of such countries as Italy, Spain and Portugal, will likely be countered by the European Central Bank, which started buying eurozone sovereign debts from markets in March to shore up the economy.

Yet the perception could change if investors grow more worried about the future of the currency union, as whether Greece can stay within the eurozone after default will be called into a question.

Yasunobu Katsuki, a senior analyst at Mizuho Securities, said: “Financial markets will say ‘it’s all Greek to me’. Markets will reset their trend until last week and will start the week with risk aversion.”
Reuters contributed to this report


http://www.theguardian.com/world/2015/jun/29/greece-crisis-markets-begin-to-tumble-as-investors-flee
 
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shassan655

Senator (1k+ posts)
I am very scared of this whole mess....I hope this Greece doesn't do a Domino effect...otherwise we will be in a Shock and Awe...
 

Galaxy

Chief Minister (5k+ posts)
Dont worry they wont let their brothers in greece go down.I would worry more about the muslim countrys. May Allah save them from the jewish snake.