New York: Greece's abrupt call for a referendum on EU bailout deal spooked global markets on Tuesday. Greek PM Papandreou's move threw into question the survival of efforts to contain the debt crisis.
France and Germany caught unawares - they summon Papandreou for talks at Cannes before the G20 starts.
Chairman of EU FM’s, Jean-Claude Juncker, says Greece will go bankrupt if voters rejected the bailout package.
Greek FM says he’s confident that Greeks would support the government's reforms in the referendum.
Periphery deep in the red: Athex was down 7 per cent; FTSE MIB down 6.8 per cent and IBEX down 4.2 per cent.
Among US markets, the Nasdaq Composite tumbled 2.9 per cent to 2,607 and S&P 500 Index fell 2.8 per cent to 1,218. The Dow Jones Industrial Average lost 2.5 per cent to 11,658.
S&P 500 was down over 5 per cent this week now - below 14-day moving average.
European markets ended sharply lower: CAC was down 5.4 per cent at 3068; DAX tanked 5 per cent at 5834; FTSE slipped 2.2 per cent at 5421.
DAX Futures fell 4.7 per cent and CAC Futures dropped 5.2 per cent.
Two days FOMC meet began on Tuesday; FOMC decision will be announced on Wednesday.
Policy statement is expected about 12:30 pm US time; press briefing at 2:15 pm US time
Fed could begin to prepare financial markets for further monetary easing
But it will likely refrain from announcing any new stimulus just yet.
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