Greece’s shock decision to hold a referendum on its euro zone bail-out package has renewed uncertainty in the financial markets.
Stocks have spiralled downwards with investors scrambling for safer shares. Bourses across Europe dropped up to three percent on opening with euro zone banks hit particularly hard.
Greece’s decision raises the possibility of a disorderly default on its debt if the country votes against the bailout plan.
Furthermore, with the referendum not expected until the beginning of next year, some traders fear the uncertainty will continue throughout November and December.