The breakdown of talks between Greece and its lenders has created a turbulent start to the week ahead for markets that have largely been taking a complacent view of the crisis.
U.S. stock futures were sharply lower Sunday night as investors weigh the possibility of a Greek exit from the euro zone after the talks toward resolving its debt crisis failed. Greece’s Prime Minister Alexis Tsipras set a referndum for July 5 and Greece instituted a bank holiday as Greeks rushed to ATM machines.
“We expect equity markets to suffer broad declines,” says Marc Chandler, head of foreign exchange strategy at Brown Brothers Harriman. Chandler said he expects the euro to weaken and investors to move into yen and Swiss francs, in a safety trade.