At 12.55am (AEST), 30 minutes into the session, the Dow Jones Industrial Average was down 110 points, or 0.6 per cent, to 17,620. Greece’s foray into the unknown with its rejection of terms set by its worldwide creditors is jolting markets as investors react to looming uncertainties.
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Many credited the moderate declines to the resignation of Greece’s finance minister, who had clashed with his European counterparts. The Institute for Supply Management’s services index data is expected at 10 a.m. ET.
“This is due to the fact that his abrasive negotiating manner could be counterproductive to any potential future negotiations”, McCaig continued. “A deal to keep Greece in the eurozone remains possible, but the odds against a successful conclusion have now lengthened”. “Very real”, said a note from Briefing.com.
The European Central Bank’s governing council will meet Monday to discuss emergency lending options for Greece.
Fear of uncertainty was felt across European markets on Monday. 1 %, to 17,732.55. The Greek stock market was closed for the week ahead of the referendum on Sunday, and there aren’t plans to reopen it until Tuesday at the earliest. Shanghai gained 2.41 percent as officials unveiled measures to shore up liquidity in Chinese markets.
Elsewhere in Asia, Hong Kong’s Hang Seng dropped 3.67% to 7610, while Japan’s Nikkei shed 2.08% to 20112. It appears that markets don’t view Greece as a systemic risk to the financial system, despite its hard financial position and political challenges. The Nasdaq composite fell 14 points, or 0.3 percent, to 4,994. Bond prices and yields move inversely. Readings above 50 indicate expansion, while those below point to contraction.
“Markets have ignored consequences for the rest of the euro monetary union up until now, but the Greek “no” vote probably changes this, which could now result in investors worrying about what happens to other weak peripheral countries”, said William Longbrake of the University of Maryland’s Robert H.
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But mainland Chinese shares jumped, recovering from their recent swoon after 28 companies agreed to postpone planned initial public offerings and brokerages pledged more than $19 billion for a fund to stabilize the free-falling market.
