Stocks fall globally as Greek talks collapse

Stock markets around the world fell on Monday, suffering their first bout of significant contagion from the Greek crisis after 11th hour talks between the near bankrupt country and its creditors collapsed.

The losses were broad across risk assets. Major stock indexes fell sharply, as did crude oil prices, while the euro weakened against the dollar. Gold and silver rose on the day.

The MSCI International ACWI Price Index fell 0.9 per cent while the pan-European FTSEurofirst 300 lost 1.4 per cent, pressured by losses in bank stocks. The Hang Seng index of top shares in Hong Kong fell 1.5 per cent.

The Dow Jones industrial average fell 164.05 points, or 0.92 per cent, to 17,734.79, the S&P 500 lost 16.38 points, or 0.78 per cent, to 2,077.73 and the Nasdaq Composite dropped 50.20 points, or 0.99 per cent, to 5,000.90.

The CBOE Volatility index, a measure of US investor anxiety, rose 10.5 per cent, while a gauge of European stock market volatility popped 10.7 per cent and hit its highest since January.

The benchmark 10-year US Treasury note rose 14/32 in price, pushing the yield down to 2.3307 per cent.

In the currency market, the euro fell against the US dollar, down 0.3 per cent to $1.1240, recovering from a low of $1.1188. The US dollar index, which measures the greenback against a basket of currencies, rose 0.15 per cent. The yen moved less than 0.1 per cent against the dollar.