Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Euro stocks face worst day since 2011 on Greek crisis

06/29/2015 | 03:26am EST

LONDON (Reuters) - European shares took a hammering in early deals on Monday, with Southern European banks especially badly hit, after Greece closed its banks and imposed capital controls as a result of its debt problems.

Portugal's PSI-20 <.PSI20> benchmark share index sank 5 percent, worse than a 3 percent drop in the pan-European, blue-chip FTSEurofirst 300 index <.FTEU3>.

Germany's DAX <.GDAXI> and France's CAC <.FCHI> both fell by around 4 percent, while the euro zone's blue-chip Euro STOXX 50 index <.STOXX50E> also declined by a similar amount - marking the Euro STOXX's worst one-day percentage loss since late 2011.

After bailout talks between the leftwing government and foreign lenders broke down at the weekend, the European Central Bank froze vital funding support to Greece's banks, leaving Athens with little choice but to shut down the system to keep the banks from collapsing.

Greek banks will be closed and the Athens stock market shut all week. There will be a daily 60 euro limit on cash withdrawals from cash machines, which will reopen on Tuesday.

"The risk of a 'Grexit' (from the euro zone) is rising and uncertainty is increasing as we enter the uncharted territory of default, deposit controls and payment in IOUs," Goldman Sachs wrote in a note on Sunday.

(Reporting by Sudip Kar-Gupta; Editing by Lionel Laurent)


© Reuters 2015
Stocks mentioned in the article
ChangeLast1st jan.
DAX 2.82% 15813.94 Delayed Quote.12.11%
PSI 20 INDEX 1.04% 5567.68 Real-time Quote.12.49%
THE GOLDMAN SACHS GROUP, INC. 2.74% 400.18 Delayed Quote.42.76%
Latest news "Economy & Forex"
02:17pTwitter acquires Slack-like company Quill to improve messaging tools
RE
02:12pECB picks Spain's Arce for key economics job
RE
02:12pKazakhstan 'keen to raise' oil output, deputy energy minister says
RE
02:09pNorway finance minister says we do not know how much the new financial covid compensation measures will cost
RE
02:06pFrench economy set for fourth quarter growth slightly below 0.75% - central bank
RE
02:01pBlockchain startup TRM Labs raises $60 mln in Tiger Global-led round
RE
02:00pFrench central bank business climate survey shows staffing difficulties worsened in services, supply problems worsened in industrial sector
RE
02:00pFrench central bank sees q4 q/q growth of slightly less than 0.75%
RE
01:50pFTC settles with Vyera over Daraprim, Shkreli litigation to go on
RE
01:46pUser reports indicate united airlines is having problems - downdetector
RE
Latest news "Economy & Forex"