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These are external links and will open in a new window. Stock markets in Europe and the US have fallen after Greece closed its banks and restricted cash withdrawals.

The moves by the Greek authorities came after the European Central Bank decided not to extend emergency funding. London's FTSE index closed down 1. In the US, the Dow Jones closed 1.

Bank stocks were among the hardest hit, with Commerzbank and Deutsche Bank losing 4. Speaking after the London market had closed, chancellor George Osborne said that British banks had "dramatically less" exposure to Greece than in Mr Osborne also warned that the Greek crisis was "one of the biggest external economic risks to the British economy".

The Athens Stock Exchange and Greek banks are closed all week.

Meanwhile, political developments have continued, with the European Commission chief, Jean-Claude Juncker, saying he feels "betrayed" by the "egotism" shown by Greece in the failed debt talks. Greece crisis - live coverage.

Last week, talks between Greece and the eurozone countries over bailout terms ended without an agreement, and Prime Minister Alexis Tsipras then called for a referendum on the issue to be held on 5 July.

There is zero chance of the European Central Bank turning Emergency Liquidity Assistance back on - life-saving lending to banks - unless Greeks give an affirmative vote to a bailout proposal from the rest of the eurozone and the IMF, which Juncker sees as a proxy for Greece's monetary future.

How does the Greek debt crisis impact the United States? - LA Times

As for Athens, most of the Syriza government detests the bailout offer - for the way it pushes up VAT and cuts pensions. So we will have the bizarre spectacle of a Prime Minister, Alexis Tsipras, arguing both against the bailout and for remaining inside the eurozone - so goodness only knows how he will vote.

And Greek people will be torn between fear and loathing of bailout proposals that will damage the living standards of many of them, and fear and loathing of abandoning the euro and seeing their banks closed sine die. Read Robert's blog in full. Greece's temporary bank closure is sending investors' money into other European markets, which experts say will continue in the short term, as investors worry about a potential massive default in the country.

They are also concerned that other European economies could suffer similar debt problems, which would further rattle the financial stability in the region. Market watchers say investors are seeking solace in assets which they consider safe bets in times of crisis. But despite worries about the deepening crisis in Greece, market watchers say that European markets are equipped to handle the short-term volatility. Mr Stubbs added that because the economic situation in the eurozone had improved since , the region's economy should be able to weather the storm.

Others agree that the volatility could be short-lived, as investors digest each turn in the long-running saga of the Greek debt crisis.

After a tumultuous weekend, many Athenians are returning to work on Monday - despite the closure of the country's banks. If not for the doom-laden headlines displayed across newspaper kiosks, and the modest queues outside ATMs, you'd be forgiven for thinking it was just a normal weekday in the Greek capital.

TV crews and tourists occupy the central squares in the searing heat; the bars and cafes are as busy as ever.

What Greece’s crisis will mean for the world economy - The Washington Post

But there is a sense of unease - Greece's economy may just manage to function until Sunday's planned referendum, but Athenians are all too aware that the country's future still hangs in the balance. A rally in support of the "no" campaign - affiliated to the anti-austerity Syriza party - is due to take place this afternoon, and there will undoubtedly be a counter-protest at some point.

However, most of the Athenians I've spoken to are weary - after the peaks and troughs of the last few months, they've learned to take each day as it comes. Other experts believe that despite the continuing uncertainty and the missed deadlines , Greece could still reach a deal that would avert a financial disaster.

He is watching Italian and Spanish bond market action, adding, "Yes, those yields have risen - but they're not in panic territory yet. King Salman has replaced the previous heir to the throne - his nephew - with his year-old son.

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Greece's Economy and How It May Affect the US - ABC News

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Why The Greek Economy Is Affecting Global Markets | World Financial Watch

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