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.”

CNBC

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