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European markets hit by Greek waves

European markets hit by Greek waves
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European markets have seen major falls after Greece pulled the shutters down on its banks and stock exchange and introduced capital controls.

Athens took the decision after the European Central Bank decided to end emergency funding.

Stocks in Spain, Portugal and Italy were hit hard in initial trading as Greece heads closer to the euro exit door.

Alastair McCaig is a market analyst at IG and says any insecurity will buffet markets:
“There are a multitude of questions that have arisen on the back of this weekend’s exercises and scarce actual answers. When it comes to the markets they do tend to assume the worst and that is why we have seen an aggressive sell-off in equities this morning.”

The markets calmed as the day progressed.

Greece’s banks and stock market are to remain closed until after the July 5 snap referendum called by Greek Prime Minister Alexis Tsipras on further austerity measures demanded by creditors.