(MENAFN- Kuwait News Agency (KUNA)) The US stock market had its worse drop in two years on Monday amid fears that Greece will not pay an IMF loan due tomorrow just as its European bailout expires.
The DOW fell 350 points, almost a two percent drop. The S&P 500 shed over two percent and the NASDAQ decreased 2.4 percent. Europe was hit even harder as Germany's DAX is down 3.6 percent and France's CAC 40 lost 3.7 percent. Tokyo's Nikkei 225 lost 2.9 percent and China's Shanghai composite decreased by 3.3 percent.
Greece is set to call a referendum vote on July 5 to determine if the country should accept the latest bailout from the European Central Bank and the IMF.
If the country defaults on the USD 1.8 million repayment as expected on Tuesday it could increase the possibility of Greece leaving the Eurozone.
Investors are now faced with the decision of evaluating a country's worth during a state of political and economic turmoil.
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