Reuters logo
European Factors to Watch-Shares seen sharply down after Greeks say "No"
July 6, 2015 / 5:42 AM / in 2 years

European Factors to Watch-Shares seen sharply down after Greeks say "No"

LONDON, July 6 (Reuters) - European shares headed for a sharp drop on Monday after Greeks rejected austerity measures demanded in return of a debt deal, raising concerns about the country’s exit from the euro zone.

Financial spreadbetters predicted Britain’s FTSE 100 to open 106 to 140 points lower, or down as much as 2.1 percent. Germany’s DAX was seen falling 294 to 328 points, or as much as 3 percent lower, and France’s CAC 40 was seen slipping by 134 to 143 points, or down as much as 3 percent.

“After surprising the market by calling a referendum, the Greek people once again surprised the market by voting ‘No’. This puts the Greek government on a collision course with the creditors and the risk of a Grexit has certainly increased,” Philippe Gijsels, head of research at BNP Paribas Fortis Global Markets in Brussels, said.

“This will make for a traditional ”risk-off“ in line with what we saw last Monday, with more risky assets going down and money floating to safe heavens. At the end of the day, the negotiations will continue but the outcome is uncertainty.”

Stunned European leaders called a summit for Tuesday to discuss their next move after the surprisingly strong victory by the ‘No’ camp defied opinion polls that had predicted a tight contest. German Chancellor Angela Merkel’s deputy said Athens had wrecked any hope of compromise with its euro zone partners by overwhelmingly rejecting further austerity.

The vote leaves Greece in uncharted waters: risking a banking collapse that could force it out of the euro. Without more emergency funding from the European Central Bank, Greece’s banks could run out of cash within days. That might force the government to issue another currency to pay pensions and wages.

------------------------------------------------------------------------------ > Euro, stocks hit by Greek vote; China bounces after rescue moves > Nikkei tumbles on Greek ‘No’ vote, yen’s rise; Toshiba dives > Euro skids on Greek ‘No’ vote, yen gets safe-haven boost > Gold’s safe-haven gains from Greece fizzle on robust dollar > London copper hits lowest since March on China, Greece jitters > Oil prices tumble after Greece vote, China stock market turmoil

Reporting by Atul Prakash; Editing by Sudip Kar-Gupta

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below