Greece default fears affected the global markets

Greece default fears affected the global markets

June 30, 2015

The Global equity markets declined on increasing concerns of Greek debt default and a possible exit from the Euro area. In addition Greece has closed its banks and imposed capital controls. Certainly the failure to pay the IMF debts will affect the economy of the Euro zone.

In fact, the markets have suffered sharp losses after Greece failed to reach an agreement with its lenders who have refused to extend Greece bailout program. Pushing the investors to turn away from risk aversion and invest in safe haven assets like the Gold and Yen. While the Euro dropped against the U.S Dollar hitting a low of $1.09

The Greece default fears have not only affected the European and Asian stocks which fell significantly, but also the U.S markets like: Wall Street, Dow Jones.
Even the Arab markets have declined yesterday including Saudi Arabia stock market along with Dubai, Abu Dhabi, Qatar and Kuwait, where their general indexes witnessed a significant decline. Furthermore, crude oil has continued its bearish trend to trade below three-week lows.

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