U.S.
stock index futures fell around 1 percent in heavy trading on Monday
after Greek bailout talks broke down, intensifying fears that it could
be the first country to exit the euro zone.
Markets around the world fell on fears the problem could spread to other European countries. The blue-chip Euro STOXX 50 index .STOXX50E towards its biggest one-day percentage loss since late 2011.
The European Central Bank froze funding to Greek banks, forcing Athens to shut banks for a week to keep them from collapsing.
"What the Greek government is doing is almost unprecedented for developed nations," said Adam Sarhan, chief executive of Sarhan Capital in New York.
"I don't remember anytime in recent history where a developed nation literally shut down its banking system for an entire week."
Greece faces default if it does not repay 1.6 billion euros ($1.8 billion) to the International Monetary Fund on Tuesday.
Default would send Greece sliding towards a euro exit and challenge Europe's grand project to bind its nations into an unbreakable union with a common currency.
Adding to the uncertainty, Chinese stocks closed sharply lower after a volatile day of trading despite surprise monetary easing by the central bank.
U.S. investors also await May data for pending home sales from the National Association of Realtors, which is expected to have dropped 1.2 percent after rising 3.4 percent in April. The data is expected to be released at 10 a.m. ET (1400 GMT).
The Federal Reserve Bank of Dallas will issue manufacturing outlook survey for June at 10:30 ET (1430 GMT).
Markets around the world fell on fears the problem could spread to other European countries. The blue-chip Euro STOXX 50 index .STOXX50E towards its biggest one-day percentage loss since late 2011.
The European Central Bank froze funding to Greek banks, forcing Athens to shut banks for a week to keep them from collapsing.
"What the Greek government is doing is almost unprecedented for developed nations," said Adam Sarhan, chief executive of Sarhan Capital in New York.
"I don't remember anytime in recent history where a developed nation literally shut down its banking system for an entire week."
Greece faces default if it does not repay 1.6 billion euros ($1.8 billion) to the International Monetary Fund on Tuesday.
Default would send Greece sliding towards a euro exit and challenge Europe's grand project to bind its nations into an unbreakable union with a common currency.
Adding to the uncertainty, Chinese stocks closed sharply lower after a volatile day of trading despite surprise monetary easing by the central bank.
U.S. investors also await May data for pending home sales from the National Association of Realtors, which is expected to have dropped 1.2 percent after rising 3.4 percent in April. The data is expected to be released at 10 a.m. ET (1400 GMT).
The Federal Reserve Bank of Dallas will issue manufacturing outlook survey for June at 10:30 ET (1430 GMT).
No comments:
Post a Comment