Greece Crisis affecting the global stock market

Greece, June-29 Stock markets in Europe and Asia have seen big falls after Greece closed its banks and imposed capital controls.

The moves by the Greek authorities came after the European Central Bank decided not to extend emergency funding.

London's FTSE 100 index fell 2% in early trade. Earlier in Asia, Japan's Nikkei index fell nearly 3%.

On the currency markets, the euro had fallen to $1.0953 at one point in Asian trading from $1.1165 on Friday, but it then recovered some ground.

Elsewhere in Europe, Germany's Dax share index and France's Cac 40 were both down more than 3%. The Athens Stock Exchange and Greek banks are closed all week.

London's FTSE 100 share index was down 143.72 points, or 2.1%, at 6,609.98, with other European markets seeing even bigger falls.

On the currency markets, the euro saw volatile trading in Asia, falling by 2% at one point, However, it has since recovered some ground, with the euro down 0.6% against the dollar at $1.1095.

The euro has weakened against the pound, with one euro now worth £0.7064, while the pound buys €1.4157.

Oil prices are heading lower. Brent crude oil futures fell more 1.5% to $62.61 a barrel.

Bond yields for Italy, Spain and Portugal – which are considered some of the weaker eurozone economies – rose sharply.

 Similarly the benchmark BSE Sensex tanked over 535 points and the NSE Nifty slid below the 8,300 mark in opening trade  showing the effect of Greece crisis.

In contrast, German bond yields fell. German bonds are seen as safer investments in times of crisis.

Source:BBC