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.”


This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Craig Erlam

Craig Erlam

Senior Market Analyst, UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam