Markets Trade Limit Down

Markets have not yet been convinced that Greece is set to exit the Euro Area, but capital controls have been introduced, with banks to be shuttered until July 6^th and the stock market closed for the day. Cash withdrawals across the nation have been limited to EUR 60 per person per day, including local branches of foreign banks. Even after assuring the safety of deposits, Greeks are flocking to withdraw funds from banks and racing to stock up on basic provisions across the nation. The Government is presently applying for another bailout extension for the existing measures set to expire tomorrow, however, a deal seems unlikely as other Euro Area nations attempt to ring fence themselves from losses. Futures markets are trending considerably lower since reopening with EURUSD plunging almost 200 pips before recovering.

Traders pared long positions in crude oil and natural gas following the decision to implement capital controls across Greece as the country verges on the brink of default. The reverberation from the decision to reject the latest set of conditions from the institutions including the European Council, European Central Bank and International Monetary Fund left markets bidless in the reopening hours as fear began to spread of contagion. Energy markets were not immune from the developments as evidenced by the spectacular drop in crude oil benchmarks. West Texas Intermediate fell below key support at $58.73 while Brent is trading -1.56% weaker, rapidly approaching a critical support level sitting at $62.10 per barrel. Natural gas was not left out of the equation with NYMEX Henry Hub down over -0.79% at $2.748 per MMBtu (British thermal unit).