As I'm sure you have heard and read already apart from the terrible atrocity in Tunisia, the other major news at the moment is the on going threat of Greek default and a potential exit from the Euro. This seems to have come a step closer as the talks broke down and now Greek banks have been closed and currency controls imposed.
There is still an outside chance that the EU might get its way via regime change if the Greek people vote for the deal which might then leave the current Greek government in a difficult position. So certainly a week will feel like a long time in Greek politics this week. In terms of what does this all mean - I saw a good article in Money Week recently which looked at an Anatomy of a Grexit: What would happen if Greece left the euro? Interestingly in the table about half way down the article which looked at the timetable for a Greek exit from the Euro the first stage was closure of the banks, although I note they are still allowing partial withdrawals.
So time will tell if this is the beginning of the end for Greece in the Euro or if there will still be some last minute fudge. Regardless of that it has still caused a wobble in the markets as the reality of a potential exit finally dawns. At the time of writing the FTSE for example is off around 1.5% to 6650 and the Eurostoxx 50 is off over 3%. In terms of FTSE and the chart below, it looks like it is just about hanging onto support in the low 6600's which it bounced from earlier this month.
However if that gives way it looks like it the 6200 to 6400 area might be the next most obvious area of support may be.
In the short term this will obviously continue to unsettle markets until it is resolved one way or another. It remains to be seen if it might be a sea change event which has knock on effects and contagion around the rest of the EU periphery and whether this brings the 6 year old bull market in equities to an end. Failing that, longer term it might actually be good to have finally got it out of the way and it might then actually help Greece and the Eurozone to move onto a stronger footing. Time will tell if we have seen the top or if the current shake out represents a healthy correction and a good buying opportunity but not a time for being a hero right now I suspect.