Global stocks, euro fall but no rout after Greeks vote ‘no’

Financial Post

LONDON — Shares fell in Europe and Asia, the euro stumbled and yields on weaker eurozone economies’ bonds rose after Greece overwhelmingly voted against conditions for a rescue package, but there was no rout and contagion was limited.

Investors sought low-risk assets including Bunds, but the yield premium of Italian 10-year debt over Germany remained below last Monday’s eight-month highs.

The euro lost half a per cent to US$1.1064 and 0.6 perc ent against the safe-haven Japanese yen. It fell as low as Us$1.0967 in Asia before rebounding, taking some support from the resignation of Greece’s outspoken finance minister, Yanis Varoufakis.

Some bankers, including JPMorgan, said the vote made it more likely that Greece would leave the single currency. Other investors said the European Central Bank’s response would be key to the extent of contagion.

“The market is, rightly or wrongly, taking a great deal of credence of the fact…

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