The week is set to start in a dramatic fashion, with markets digesting the outcome of a last-ditch effort in Europe to avert a Greek default and a cut in the benchmark interest rates by China’s central bank.
Over the weekend, Greece failed to strike a deal with its international lenders to secure more emergency funding, which it desperately needs before June 30 to repay its loans. The collapse of negotiations on Saturday has forced Greece to introduce capital controls and keep its banks shut.
The debt-stricken nation will now be headed for a bailout referendum on July 5, authorized by Greek lawmakers on Sunday. A yes vote will mean that Greeks are willing accept the latest bailout terms offered by creditors to Athens, while a rejection will likely increase Greece’s chances of exiting the Eurozone.