Eurozone stocks, low-rated bonds and the euro weakened on June 30 as Greece looked set to default on a repayment due to the International Monetary Fund and to plunge deeper into financial crisis.
There was little evidence of panic, however, with investors pointing to Europe's improved ability to fight financial contagion since the height of the euro debt crisis in 2011.
Greece's left-wing prime minister Alexis Tsipras appeared on the Greek state television urging Greeks to reject the terms of an international aid deal in the July 5 referendum, dismissing warnings that a "no" vote would drive Athens out of Europe's currency union.
"Their plan is not to kick us out of the Eurozone, their plan was to end hope that in Europe there can be an alternative policy," he said.
He added the stronger the vote to reject the reform-for-aid deal, the stronger the Greek hand in any negotiations that may follow.
The breakdown of talks between Athens and international creditors over the weekend has led to a shuttering of banks and capital controls in Greece and market jitters worldwide, with a referendum due on Sunday which EU partners say will be a choice of whether to stay in the euro.
Caught between fears of economic collapse and defiance of the demands from international creditors, many Greeks expressed shock, although opinion polls published in Sunday newspapers pointed to a majority in favor of accepting the bailout terms.
"They are trying to kill us. I don't think this is a dilemma on whether to stay or leave the euro zone. But those bailout terms cannot be accepted," said 70-year-old George Kambitsis. "We don't have any money, but they want to take more from us. How will we eat, how will we live?"
More than a third of automated teller machines across Greece ran out of cash as Greeks pulled out money on fears their country was set to crash out of the euro following the announcement.
The country’s European partners shut the door on extending a credit lifeline to Athens, leaving it facing a default that could push it out of the euro after the leftist government rejected tough lender demands and put their bailout deal to a referendum.
But apparently the premier has more faith in the situation than any of his European neighbors and most of his people combined.