Stocks across European tumbled Monday, with investors rattled as Greece closed its banks and stock market, with the country looking set to default on its debt as talks with creditors unraveled.
The Stoxx Europe 600 dropped 3.1% to 384.84, and the three stocks moving higher on the index were miners Randgold Resources Ltd. (RRS.LN) and Fresnillo PLC (FRES.LN), and oil-services company Seadrill Ltd. (SDRL.OS).
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On the national indexes, Germany's DAX 30 tumbled 3.5% to 11,093.48, and France's CAC 40 fell 3.5% to 4,878.31. Spain's IBEX 35 lost 4.3% to 10,889.90, and the U.K.'s FTSE 100 was down 2% to 6,619.36.
Equities found no relief from a report Monday that European Commission President Jean-Claude Juncker will put forward new reform proposals (http://www.marketwatch.com/story/greece-to-get-new-creditor-proposal-monday-says-moscovici-dj-2015-06-29)for Greece at 12:30 p.m. in Brussels, or 6:30 a.m. Eastern Time. Greece faces a debt default, with a EUR1.54 billion ($1.72 billion) payment due to the International Monetary Fund on Tuesday.
The Greek stock market is closed Monday and will stay closed the rest of the week, the country's Capital Markets Commission said, and banks in Greece will be shut until July 6. The moves came as Greek lawmakers on Sunday approved a referendum (http://www.marketwatch.com/story/greece-sets-stage-for-chaotic-monday-week-2015-06-28) on July 5 proposed by Greek Prime Minister Alexis Tsipras. Greeks will be asked to decide whether to accept reform measures demanded by the country's lenders that would ultimately unlock about EUR15.3 billion in funds.
"After months of this, I had hoped we would see a better outcome for all," Philippe Bonnefoy at Eleuthera Capital told Dow Jones Newswires. "How do you trade a referendum vote dated July 5 on a deal that will have expired the previous week on June 30th, at the same time you have a bank run occurring? We all have Greek fatigue."