Europe’s financial markets were jolted Monday by the collapse of talks and imposition of capital controls in Greece, although initial heavy selling eased as investors judged there was still some time until the saga plays out, Reuters reported.

Greece’s banks and stock market were closed today and were expected to remain so until after the July 5 snap referendum called by Greek Prime Minister Alexis Tsipras on austerity demanded by eurozone partners.

The failure to reach a deal with creditors leaves Greece set to default on 1.6 billion euros of loans from the International Monetary Fund that fall due on Tuesday. Athens must repay billions of euros to the European Central Bank in the coming months.

Wall Street was set to open around 1 percent lower while the FTSE Eurofirst blue chip index was down by just over 2 percent overall.

After an initial wave of selling, however, most markets recovered some ground. The one-day moves were large but looked pale in comparison with the events of 2008 or the last major round of Greek-spurred turmoil in 2011-12.

“The European financial system now has much less exposure to Greece than in 2011 and 2012,” said Stephanie Flanders, chief market strategist for Europe at JP Morgan Asset Management. “It is also better equipped to deal with contagion to other countries — and so are the countries themselves.”