Futures Pointing To Sharply Lower Open On Wall Street

(RTTNews) - Stocks are likely to come under pressure in early trading on Monday amid ongoing concerns about the situation in Greece. The major index futures are currently pointing to a sharply lower open for the markets, with the Dow futures down by 177 points.

The downward momentum on Wall Street comes as the latest round of talks between Greece and its creditors broke down over the weekend.

Greek Prime Minister Alexis Tsipras subsequently called for a referendum on the bailout proposals by creditors on July 5th.

The country is required to make a 1.6 billion euro payment to the IMF on June 30th, and the Greek Prime Minister is seeking to get an extension until the referendum.

With the European Central Bank opting to freeze the emergency liquidity assistance for Greek banks in the wake of the referendum call, Greece decided to close its banks and imposed capital controls.

"The Greek Government's decision to call a referendum has elevated the crisis to a higher level," said Jonathan Loynes, Chief European Economist at Capital Economics. "While a deal may yet come together, a near-term Grexit now seems more likely than not."

Not long after the open, the National Association of Realtors is scheduled to release its report on pending home sales in the month of May.