A closed bank in Athens this morning. Photograph: Thanassis Stavrakis/AP
The Greek debt crisis is set to sent turmoil through Europe’s financial markets this morning, as the looming prospect of Greece plunging out of the eurozone sends panic through trading floors.
Shares are set to tumble in London, Frankfurt, Paris and beyond, after a dramatic weekend which began with Alexis Tsipras announce a referendum on bailout terms next Sunday – and ended with the imposition of capital controls and a bank holiday for at least a week.
Video: Alexis Tsipras announce capital controls (with English subtitles)
In Greece, people are facing up to the news that banks will remain shut for at least a week – and that they will be restricted to taking out €60 per day at the cash machines.
Germany’s DAX index is predicted to plunge by 5% – an alarming selloff – while Britain’s FTSE 100 is on track to shed over 2% when trading begins at 8am BST.
European government bonds could also come under pressure, if investors calculate that the eurozone debt crisis is going to spread.
Asian stock markets have already been through a torrid day, with Japan’s Nikkei tumbling almost 3%. And the euro has already shed around 1% against the US dollar.
Here’s our overnight story:
Europe’s political leaders are also scrambling to address the crisis, with Greece now on track to exit its bailout tomorrow night and default on its €1.6bn repayment to the International Monetary Fund.
European Commission head Jean-Claude Juncker is due to hold a press conference at 10.45am BST to discuss the latest developments on Greece.
In Berlin, German Chancellor Angela Merkel has called an emergency meeting with the heads of parliamentary groups and party leaders today, while French President Francois Hollande will chair crisis talks with key ministers in Paris this morning.
UK prime minister David Cameron is due to speak on the situation soon – he’s due on Radio 4’s Today Programme this morning (the ten past eight slot).
I’ll be tracking all the main events through the day….
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