A sharp stocks selloff was recorded on Monday worldwide, including Wall Street. Investors are preparing themselves for Greek default. At the same time they are concerned that a similar scenario can happen to other financially weak countries around the globe.
The Dow Jones industrial average dropped by 350.33 points, or 1.95%, to 17,596.35 (the biggest one-day decline since June 2013, which erased all of the gains made by the index this year). The Standard & Poor's 500 declined by 43.85 points, or 2.10%, to 2,057.64. The Nasdaq Composite fell by 122.04 points, or 2.40%, to close at 4,958.47.
Experts say that a default would definitely shake markets, but it would not be as painful as the 2008 crisis.
This morning in Asia Hong Kong Hang Seng rose by 1.24%, or 322.65 points, to 26,289.63 despite Greek drama. China Shanghai Composite Index advanced by 1.96%, or 79.64 points, to 4,132.67. Meanwhile the Nikkei gained 0.49%, or 99.43 points, to 20,209.38 with airlines leading the gains amid lower fuel prices.
Chinese stocks volatility is likely to persist in the coming weeks.
Investors are waiting for statements from the European Central Bank. Some believe that it can boost its QE program to help markets overcome Greek drama.