The Dow Jones Industrial Average slipped 39 points, or 0.2%, to 17646 shortly after the opening bell, while the S&P 500 lost three points, or 0.1%, to 2066. The Dow is down 149.62 points or 0.9 percent at 17,533.96, the Nasdaq is down 67.75 points or 1.4 percent at 4,924.19 and the S&P 500 is down 17.46 points or 0.8 percent at 2,051.30.
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In Sunday’s referendum, more than 61 percent of Greeks voted ” no”, rejecting a proposal from worldwide creditors that included pension cuts, tax increases and other measures.
“The tone of commentary from around the eurozone has not demonstrated a unified view on what this means to the ongoing status of Greece as a member nation, and as such, traders are left baffled as to what happens next”, McCaig wrote.
Equity futures earlier trimmed their declines after Greek finance minister Yanis Varoufakis resigned, amid speculation the move may aid talks with creditors.
“This is due to the fact that his abrasive negotiating manner could be counterproductive to any potential future negotiations”, McCaig continued.
“Agreeing on a programme with the current Greek government will be extremely hard for EA leaders, given the Greek rejection of the last deal offered and will be a hard sell at home”, the note said.
Euro zone leaders concluded emergency summit in Brussels to discuss Greece. German Chancellor Angela Merkel and counterparts across Europe must decide if a financial rescue of the region’s most indebted country is still possible.
Oil prices stabilized after a massive sell-off on Monday triggered by concerns over Greece and the rout in China’s stock market.
The dollar gained almost 1 percent, while the euro hit a low of $1.0915, its lowest since June 2. The move helped send the Shanghai Composite up 2.41% to 3775.
The Shanghai Composite Index jumped 3.7 per cent after China suspended initial public offerings and brokerages pledged to buy shares in weekend measures aimed at halting the market rout.
The vote raises immediate worries about a cash crunch in Greece and the debt-wracked country’s ability to stay in the eurozone.
In US economic data, May global trade numbers showed that the US trade deficit widened , fueled by a drop in exports. The median estimate in a Bloomberg survey of economists was 56.4. Readings above 50 indicate expansion, while those below point to contraction.
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The Federal Reserve releases its meeting minutes Wednesday afternoon. Humana closed up 0.8%. USA oil prices fell almost eight percent.
