Calm Before Storm? Stocks Rally as Greece in Crisis

Global stock markets were eerily calm on Friday as Greece teetered on the brink of default that could end with it exiting the euro zone.

European stocks markets were broadly higher, Japan’s blue-chip Nikkei closed up almost 1 percent and U.S. stock futures pointed to further gains on Wall Street where the Nasdaq Composite index hit a record intraday high on Thursday.

This comes against a deepening crisis in Greece. Euro zone officials hold an emergency meeting on Monday after failing to reach a cash-for-reforms deal, while talk of capital controls has grown amid reports of a massive outflow of funds from the country in recent days.

“We’re beyond the point of just talking and it looks like capital controls will have to be put in place,” Craig Erlam, senior market analyst at currency trading firm OANDA, told CNBC.

“We have reached a tipping point and this is not a time to be optimistic in markets.”


Craig Erlam
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the BBC and The Telegraph, and he also appears regularly as a guest commentator on Bloomberg TV, CNBC, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.