The euro fell almost 2 percent on Monday and European share markets looked set to eclipse big declines in Asia, as investors were spooked by the spectre of a Greek debt default which forced Athens to shut down its banks to prevent a run on deposits.
Adding to the gloomy backdrop, China shares dived another 7 percent, bringing the losses in the past two weeks to 25 percent, with the Chinese central bank’s measures on Saturday to support the economy unable to calm jittery investors.
That left investors with no appetite for riskier assets.
European shares were expected to bear the brunt of the Greek crisis, with Germany’s Dax seen falling up to 3.8 percent, France’s CAC 40 3.6 percent and Britain’s FTSE 2.9 percent.
With the prospect of Greece being forced out of the euro in plain sight, the common currency fell as much as 1.9 percent to $1.0955, its lowest in almost a month. It last stood down 1.3 percent at $1.1020.
Against the yen, the common currency dropped more than 3 percent to as low as 133.80 yen, a five-week low while it hit a 7 1/2-year low of 0.69885 British pound.
U.S. stock futures dived almost 2 percent at one point to hit a three-month low, and last traded down 1.6 percent while Japan’s Nikkei fell 2.6 percent.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 3.0 percent to five-month lows.

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