With markets and political analysts beginning to say that a Greek default is unavoidable, continuing to delay the inevitable may be the best bet to avoid contagion into other Southern European countries, according to some market observers.
The Greek parliament is expected to have a confidence vote at midnight in Athens.
European stocks rose early Tuesday and the euro stabilized versus the Swiss franc on hopes that euro zone officials will find a way to prevent a Greek default, as Fitch said even a voluntary maturity extension would lead to a cut in ratings.
A confidence vote looms in Greece, and a Bank of England official goes all dovish - it's time for your FX Fix.
Traders are focusing on the Greek vote and then the focus will come back to the United States and what is happening here, says Kevin Ferry, Cronus Futures Management.
With the world’s markets focused on the no-confidence vote in Athens Tuesday evening, one of the big questions facing the investors is if Portugal and Ireland could fall into similar difficulties if dreaded contagion where to spread across Europe’s periphery.
With economic data heading south, the Greek debt crisis and China raising rates, stocks have been under pressure, having for months managed to shrug off a wall of worry.
German banks want incentives to buy new Greek bonds once the old ones mature, to keep the country afloat, according to representatives of the Association of German bankers.
Tuesday will be the 'longest day' in Europe, John M. Hydeskov, chief analyst at Danske Markets in London, told CNBC Tuesday morning.
For more than two years, we have witnessed the economic demise of several European countries. This soon led to the financial community systematically assessing the health of several peripheral southern European countries, tumbling investment grade ratings and spikes in required rates of return on government debt of these sovereigns. As the European Central Bank continues to dole out rescue packages, many are now looking for the next country to suffer a financial attack and wondering if the euro will even survive, reports the FT.
A critical midnight vote in Athens will keep markets tuned to the latest act in Greece's financial drama Tuesday.
Whether it’s next week or next year, strategic investor Dennis Gartman thinks its only a matter of time until the European Union unravels.
"The Euro is hanging in there because ultimately the market believes that Greece will get the next aid disbursement in July," says Amelia Bordeau, Westpac Institutional Bank.
While oil has fallen sharply since May, gasoline is down just about 10 percent and it is not likely to drop below $3 any time soon.
Trade unions remain a fearsome political and economic force around the world, able to mobilize large numbers of warm bodies to man picket lines and pressure politicians.
The Greek people are increasingly realizing they do not have to acquiesce to the demands of their wealthier European neighbors who are demanding punitive austerity measures. Indeed, many of the other Europeans may have more to lose from the Greek crisis than the Greeks.
Share your opinion in Tuesday's poll.
Plus, the “Mad Money” host talks about whether he thinks Greece will leave the euro.
The volatility in the euro-dollar trade is spiking, and that could spell trouble for the euro, this analysis says.
Is the Greek debt crisis causing some tourist to change their travel plans, with Pavlos Yeroulanos, Greek tourism minister, and CNBC'sMichelle Caruso-Cabrera.