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Brace for heavy losses Monday as the escalating Greek crisis sees investors run for cover.

European markets plunged and U.S. stock futures were moving lower as shock developments pushed Greece closer to default.

1. Greek tragedy:

Greek banks will remain closed for a week and capital controls are in place as the country attempts to contain a deepening financial crisis.

The long-running debt saga hit a fresh low after Greece pulled its negotiators out of bailout talks late Friday. The government will put the rejected creditors' proposal to a referendum on July 5, in a high stakes vote that could see the country leave the euro. Ahead of the vote, Greece's financial system remains partially paralyzed - with banks closed and limits on withdrawals - after the European Central Bank said Sunday it wouldn't provide any new funding for Greek banks.

The country now appears almost certain to default on a critical debt payment due to the International Monetary Fund due Tuesday.

Government bond yields in Italy, Spain and Portugal spiked Monday, although they remain below where they were a year ago. Trading in Greek stocks and bonds was suspended in Athens.

2. China bear market:

Investor nerves were also frayed in Asia as Chinese stocks resumed their recent slide. The Shanghai Composite swung between massive gains and losses before closing down 3.3%, despite a decision by the central bank to cut interest rates to a record low.

3. Oil slides:

Pay attention to the crude market Monday. Prices were matching losses across global stock markets -- falling 2.2% to just above $58 a barrel -- in electronic trading. Gold was ticking higher, as some investors sought refuge in the traditional safe-haven market.

4. Economic updates:

It's a light day for economic news. The National Association of Realtors will report pending home sales for the month of May at 10 a.m. ET. The index aims to predict activity in the housing market, and April numbers showed new homes being bought at the highest rates since May 2006.

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What is it? This data is released about a week later than Existing Home Sales, but it's more forward-looking as a contract is signed several weeks before the home is counted as sold. It's a leading indicator of economic health because the sale of a home triggers a wide-reaching ripple effect. For example, renovations are done by the new owners, a mortgage is sold by the financing bank, and brokers are paid to execute the transaction.

When? At 10:00am Eastern time.

Trading Tip: If the actual number is higher than the forecast, you can expect the USD to rise.

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Other Top Stories:

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