LONDON (TheDeal) -- Global markets were in turmoil Monday morning as they took their first opportunity to react to Friday night's decision by the Greek government to call a referendum on the austerity measures demanded by the country's creditors and Sunday's announcements of capital controls.
Greeks will be able to withdraw a maximum of just €60 a day from bank machines, and the country's banks themselves will remain shuttered for a week, while the European Central Bank has stopped emergency funding for Greek banks.
The referendum is being seen as a poll on staying in the euro or crashing out. It will take place next weekend -- days after the country's official bailout program runs out and a €1.5 billion ($1.66 billion) loan repayment to the International Monetary Fund falls due.
Despite a reported request by the Greek prime minister, Alexis Tsipras, to request a deadline extension from eurozone governments, there is no guarantee that the final offer from creditors -- which the Greek government said it cannot accept -- will still be on the table.
The euro is down sharply against the dollar. Bond yields for southern European countries are being driven up as investors seek havens such as German bunds. And the stock markets are all down sharply. The FTSE 100 is down 1.63% at 6,643. Germany's DAX is down 3.31% at 11,111.52. In Paris, the CAC 40 is down 3.29% at 4,892.71.
In the eurozone, the biggest fallers were banks such as Germany's Deutsche Bank (DB), down 5.12% at €27.355, and Commerzbank (CRZBY) down 4.19% at €11.65. In France. Crédit Agricole (CRARY) which has a relatively large exposure to Greek banks, was down 4.42% at €13.51.