Greece banking shutdown spooks markets

Markets across the world have tumbled as Greece ordered its banks to shut for a week and imposed capital controls after its citizens emptied ATMs.

World markets are responding to Greece's anticipated departure from the Euro (AAP) Source: AAP

Global stocks slumped, with Frankfurt and Paris losing more than four per cent after an earlier collapse in Asia as investors feared a Greek euro exit.

The Greek government issued a decree to close banks until July 6 inclusive - the day after a referendum on creditors' bailout proposals.

But in a narrow ray of hope, creditors have left the door open to Greece for a last-ditch debt deal, in order to try and avert a potentially default that could spark a Greek eurozone exit.