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Greek referendum: Asian markets fall sharply after Greece no vote – live Greek referendum: Asian markets fall sharply after Greece no vote – live
(35 minutes later)
3.07pm AEST06:07
Here’s the Guardian’s view on the current impasse now facing Europe following the Greek referendum:
Kicking the can down the road has been the cliche of choice over a slow euro crisis that has steadily strangled the life out of the Greek economy. But at some point Europe was bound to run out of road. That happened on Sunday night, when it emerged that the Greek people had said no to continuing to engage with their creditors on the same suffocating terms.
Just over a week ago, Alexis Tsipras staked his future on forcing this denouement. The eight days that followed his midnight declaration of a plebiscite, to accept or reject the creditors’ terms for the latest slug of overdraft, have witnessed many extraordinary things. The Greek parliament licensed a hasty referendum on a question that had already been overtaken by events. A ballot paper written in jargon posed a ludicrously technical question, opening up a void for emotion to fill. Mixing talk of “terror” from their partners with haze about what would happen after a no, Mr Tsipras and his finance minister, Yanis Varoufakis, aimed squarely for the heart rather than the head. Meanwhile, Greeks faced the fiercest financial controls ever seen in modern Europe: bank doors were shut, supplies disrupted, and citizens queued at every cashpoint for their ration of notes. In countries such as Germany, where history engenders suspicion of referendums, it may have looked like a paradigm case of how not to do democracy.
2.57pm AEST05:57
As the sun begins to rise now in Greece on “the morning after” Syntagma Square appears empty. That may well change as another highly politically charged day is set to get underway across Europe
Syntagma Square, the morning after pic.twitter.com/8FRSRVSLsq
2.54pm AEST05:54
John Cassidy in the New Yorker has outlined some useful analysis on the implications of the no vote:
Whether they will be offered one within the euro zone remains to be seen. Although the result was a great political triumph for Tsipras and Syriza, it doesn’t automatically translate into a victory in the showdown with the European Union and the International Monetary Fund. Greece is still broke, and its banks are still closed. If the Europeans want to force the Greeks out of their currency club, they have the means to do it at any moment. All they have to do is turn off the credit that the European Central Bank has been providing to Greece’s banks. Indeed, the E.C.B.’s governing council will decide on Monday what to do next.
With Angela Merkel, the German chancellor, and François Hollande, the French President, due to meet in Paris on Monday afternoon, and an emergency summit of all European Union leaders scheduled for Tuesday, it seems highly unlikely that the E.C.B. will render these deliberations pointless by immediately torpedoing the Greek financial system. In all likelihood, there will be at least one more round of talks between the two sides, and, quite possibly, more than one. Greece’s next big payment to its creditors isn’t due until July 23rd, which is more than two weeks away. If the country’s banks can somehow be propped up until then, there is time for more deliberation.
2.50pm AEST05:50
We’ve written a lot about the market reaction to events in Europe, but the political fallout in Greece is still likely to unfold rapidly over the next few days.
Prime minister Alexis Tsipras is convening a meeting of key political leaders at 10am on Monday in Athens, according to Enikos. Overnight the Greek opposition leader Antonis Samaras resigned following the referendum decision.
How Tsipras proceeds throughout this week will continue to shape how events unfold across Europe.
2.30pm AEST05:302.30pm AEST05:30
China’s response to the Greek referendum and the market uncertainty has been to engage in a series of complex manoeuvres aimed at stimulating the market.China’s response to the Greek referendum and the market uncertainty has been to engage in a series of complex manoeuvres aimed at stimulating the market.
It’s not yet clear how successful the measures - which involve a variety of investments and buyouts aided by the central bank - will be in preventing setbacks for their markets.It’s not yet clear how successful the measures - which involve a variety of investments and buyouts aided by the central bank - will be in preventing setbacks for their markets.
Reuters have a good take on the different measures that have been employed here:Reuters have a good take on the different measures that have been employed here:
Chinese stocks jumped on Monday after Beijing unleashed an unprecedented series of support measures over the weekend to stave off the prospect of a full-blown crash that was threatening to destabilize the world’s second-biggest economy.Chinese stocks jumped on Monday after Beijing unleashed an unprecedented series of support measures over the weekend to stave off the prospect of a full-blown crash that was threatening to destabilize the world’s second-biggest economy.
In an extraordinary weekend of policy moves, brokerages and fund managers vowed to buy massive amounts of stocks, helped by China’s state-backed margin finance company, which in turn would be aided by a direct line of liquidity from the central bank.In an extraordinary weekend of policy moves, brokerages and fund managers vowed to buy massive amounts of stocks, helped by China’s state-backed margin finance company, which in turn would be aided by a direct line of liquidity from the central bank.
Investors, who had ignored official measures to prop up the market as equity indexes slid around 12 percent last week, finally reacted, with the CSI300 index .CSI300 of the largest listed companies in Shanghai and Shenzhen jumping 4 percent, while the Shanghai Composite Index .SSEC gained 3 percent. [.SS]Investors, who had ignored official measures to prop up the market as equity indexes slid around 12 percent last week, finally reacted, with the CSI300 index .CSI300 of the largest listed companies in Shanghai and Shenzhen jumping 4 percent, while the Shanghai Composite Index .SSEC gained 3 percent. [.SS]
Blue chips, the explicit target of the stabilization fund, outperformed stocks on the small-cap ChiNext indexes.Blue chips, the explicit target of the stabilization fund, outperformed stocks on the small-cap ChiNext indexes.
The rapid decline of China’s previously booming stock market, which by the end of last week had fallen around 30 percent from a mid-June peak, had become a major headache for President Xi Jinping and China’s top leaders, who were already struggling to avert a sharper economic slowdown.The rapid decline of China’s previously booming stock market, which by the end of last week had fallen around 30 percent from a mid-June peak, had become a major headache for President Xi Jinping and China’s top leaders, who were already struggling to avert a sharper economic slowdown.
In response, China has orchestrated a halt to new share issues, with dozens of firms scrapping their IPO plans in separate but similarly worded statements over the weekend, in a tactic authorities have used before to support markets.In response, China has orchestrated a halt to new share issues, with dozens of firms scrapping their IPO plans in separate but similarly worded statements over the weekend, in a tactic authorities have used before to support markets.
1.55pm AEST04:551.55pm AEST04:55
My colleague Justin McCurry has filed a more comprehensive take on the Asian market reaction to the Greek referendum - which largely saw falls across the board but with limited losses.My colleague Justin McCurry has filed a more comprehensive take on the Asian market reaction to the Greek referendum - which largely saw falls across the board but with limited losses.
China is the exception - it saw a boost on open this morning - but that is attributed to the enormous and unprecedented government measures implemented over the weekend to try and stop a market crash.China is the exception - it saw a boost on open this morning - but that is attributed to the enormous and unprecedented government measures implemented over the weekend to try and stop a market crash.
This from Justin:This from Justin:
Analysts said that regional market panic was unlikely, even after Athens appeared to take a step closer to a “Grexit” by roundly rejecting the bailout terms set by its international creditors But they added that negotiations this week would be critical.Analysts said that regional market panic was unlikely, even after Athens appeared to take a step closer to a “Grexit” by roundly rejecting the bailout terms set by its international creditors But they added that negotiations this week would be critical.
“The Greece ‘no’ vote is a surprise,” Shoji Hirakawa, chief equity strategist at Okasan Securities, told Bloomberg News. “But the key is that the direction is going toward more talks after this.”“The Greece ‘no’ vote is a surprise,” Shoji Hirakawa, chief equity strategist at Okasan Securities, told Bloomberg News. “But the key is that the direction is going toward more talks after this.”
Other analysts said markets had not expected Greek voters to reject the terms of the bailout so emphatically – a move that could see further losses on Monday and trigger an investor rush to US Treasuries or other government bonds that are seen as largely immune to market turbulence.Other analysts said markets had not expected Greek voters to reject the terms of the bailout so emphatically – a move that could see further losses on Monday and trigger an investor rush to US Treasuries or other government bonds that are seen as largely immune to market turbulence.
......
In one of the day’s more colourful commentaries, analysts at Japan’s Mizuho Bank said the Sunday’s “Greferendum” had turned out to be a “Grief-erendum”.In one of the day’s more colourful commentaries, analysts at Japan’s Mizuho Bank said the Sunday’s “Greferendum” had turned out to be a “Grief-erendum”.
On what most had expected to be a tricky day for markets around the world, dealers stressed that uncertainty over Greece’s future had not rocked markets as badly as some might have expected.On what most had expected to be a tricky day for markets around the world, dealers stressed that uncertainty over Greece’s future had not rocked markets as badly as some might have expected.
Read his report in full here.Read his report in full here.
1.45pm AEST04:451.45pm AEST04:45
“The fightback for a Europe of dignity starts here.”“The fightback for a Europe of dignity starts here.”
Another short documentary from John Domokos and Phoebe Greenwood.Another short documentary from John Domokos and Phoebe Greenwood.
As Syriza supporters flock to Athens’ Syntagma square to celebrate, Phoebe Greenwood talks to those who are celebrating a historic referendum outcome. ‘They thought they could intimidate us,’ one man says. Despite jitters on the financial markets, others happy with the historic oxi (no) vote say they hope it will be the moment that Greeks can come together.As Syriza supporters flock to Athens’ Syntagma square to celebrate, Phoebe Greenwood talks to those who are celebrating a historic referendum outcome. ‘They thought they could intimidate us,’ one man says. Despite jitters on the financial markets, others happy with the historic oxi (no) vote say they hope it will be the moment that Greeks can come together.
1.29pm AEST04:291.29pm AEST04:29
Crisis will be "appropriately resolved" China minister saysCrisis will be "appropriately resolved" China minister says
Deputy Chinese foreign minister Cheng Guoping believes the Greek crisis will be “appropriately resolved” and the economy will turn around, Reuters reports.Deputy Chinese foreign minister Cheng Guoping believes the Greek crisis will be “appropriately resolved” and the economy will turn around, Reuters reports.
However he would not say if Alexis Tsipras could attend an emerging powers summit later in the week in Russia.However he would not say if Alexis Tsipras could attend an emerging powers summit later in the week in Russia.
“I believe that with the hard efforts of all sides, Greece’s economic situation will turn around. The economic crisis will be appropriately handled,” he told reporters, in China’s first official comment since the Greek vote.“I believe that with the hard efforts of all sides, Greece’s economic situation will turn around. The economic crisis will be appropriately handled,” he told reporters, in China’s first official comment since the Greek vote.
“Whether or not it can be appropriately handled will not only have an important impact on Greece and its people, but will have an important impact on ... the world too.”“Whether or not it can be appropriately handled will not only have an important impact on Greece and its people, but will have an important impact on ... the world too.”
Asked whether Greek Prime Minister Alexis Tsipras might come to this week’s summit of the BRICS group of five major emerging nations - Brazil, Russia, India, China and South Africa - Cheng said that as Russia was the host it was its decision on whether to invite other countries.Asked whether Greek Prime Minister Alexis Tsipras might come to this week’s summit of the BRICS group of five major emerging nations - Brazil, Russia, India, China and South Africa - Cheng said that as Russia was the host it was its decision on whether to invite other countries.
Russia’s finance minister said last week that Russia had not offered Greece the chance to become a member of the New Development Bank that is being created by the BRICS group.Russia’s finance minister said last week that Russia had not offered Greece the chance to become a member of the New Development Bank that is being created by the BRICS group.
Updated at 1.43pm AESTUpdated at 1.43pm AEST
1.05pm AEST04:051.05pm AEST04:05
Result is very regrettable - Eurogroup presidentResult is very regrettable - Eurogroup president
Jeroen Dijsselbloem, Dutch finance minister and president of the Eurogroup, has released a statement on the referendum results.Jeroen Dijsselbloem, Dutch finance minister and president of the Eurogroup, has released a statement on the referendum results.
It is a short statement, but needless to say, Dijsselbloem is disappointed.It is a short statement, but needless to say, Dijsselbloem is disappointed.
I take note of the outcome of the Greek referendum. This result is very regrettable for the future of Greece. For recovery of the Greek economy, difficult measures and reforms are inevitable. We will now wait for the initiatives of the Greek authorities. The Eurogroup will discuss the state of play on Tuesday 7 July.I take note of the outcome of the Greek referendum. This result is very regrettable for the future of Greece. For recovery of the Greek economy, difficult measures and reforms are inevitable. We will now wait for the initiatives of the Greek authorities. The Eurogroup will discuss the state of play on Tuesday 7 July.
Statement of the #Eurogroup President following the referendum in #Greece: http://t.co/WxITIfwUthStatement of the #Eurogroup President following the referendum in #Greece: http://t.co/WxITIfwUth
12.44pm AEST03:4412.44pm AEST03:44
Argentinian president Cristina Fernández de Kirchner, who is never shy of enthusiastically tweeting her opinions, has welcomed the referendum results.Argentinian president Cristina Fernández de Kirchner, who is never shy of enthusiastically tweeting her opinions, has welcomed the referendum results.
In a series of tweets written in English, Fernández labeled the No vote an “outright victory of democracy and dignity.”In a series of tweets written in English, Fernández labeled the No vote an “outright victory of democracy and dignity.”
The Greek people have said NO to the impossible and humiliating conditions imposed upon them for the restructuring of their foreign debt. We Argentines understand what this is about. We hope Europe and its leaders understand the message of the polls. Nobody can be asked to sign their own death certificate. The words of President Kirchner still resound at the UN General Assembly in 2003 he said: “The dead do not pay their debts.”The Greek people have said NO to the impossible and humiliating conditions imposed upon them for the restructuring of their foreign debt. We Argentines understand what this is about. We hope Europe and its leaders understand the message of the polls. Nobody can be asked to sign their own death certificate. The words of President Kirchner still resound at the UN General Assembly in 2003 he said: “The dead do not pay their debts.”
On behalf of our People and Government, our solidarity with the brave Greek people and their Government @tsipras_eu pic.twitter.com/MkvxuZIKFzOn behalf of our People and Government, our solidarity with the brave Greek people and their Government @tsipras_eu pic.twitter.com/MkvxuZIKFz
Some background on the link between Argentina and Greece in this current crisis, from Reuters:Some background on the link between Argentina and Greece in this current crisis, from Reuters:
There are stark similarities between Argentina’s 2002 financial meltdown and the turmoil in Greece: rigid monetary regimes, creditors battling domestic politics to fix the problem and banking systems at breaking point.There are stark similarities between Argentina’s 2002 financial meltdown and the turmoil in Greece: rigid monetary regimes, creditors battling domestic politics to fix the problem and banking systems at breaking point.
The South American grains behemoth defaulted on $100 billion in bonds in a 2002 crisis that thrust millions of middle-class Argentines into poverty. By the next year, helped by a massive soy crop, Argentina started growing again.The South American grains behemoth defaulted on $100 billion in bonds in a 2002 crisis that thrust millions of middle-class Argentines into poverty. By the next year, helped by a massive soy crop, Argentina started growing again.
But the 2002 crisis continues to plague its finances.But the 2002 crisis continues to plague its finances.
Fernandez regularly blasts bondholders who have sued the country over the debt it failed to pay 13 years ago.Fernandez regularly blasts bondholders who have sued the country over the debt it failed to pay 13 years ago.
Most holders agreed to restructurings that paid about 30 cents on the dollar, while a group of hedge funds sued for full repayment.Most holders agreed to restructurings that paid about 30 cents on the dollar, while a group of hedge funds sued for full repayment.
The country defaulted again last year when a U.S. judge barred it from honouring its restructured debt without reaching a deal with the funds, which Fernandez denounces as “vultures.”The country defaulted again last year when a U.S. judge barred it from honouring its restructured debt without reaching a deal with the funds, which Fernandez denounces as “vultures.”
Argentina became one of the world’s fastest expanding economies after its default, growing at an averaging above 8.5 percent between 2003 and 2007, when Fernandez was first elected.Argentina became one of the world’s fastest expanding economies after its default, growing at an averaging above 8.5 percent between 2003 and 2007, when Fernandez was first elected.
Since then she has ordered trade and currency controls that have slowed investment while government fiscal accounts deteriorate due to high state spending.Since then she has ordered trade and currency controls that have slowed investment while government fiscal accounts deteriorate due to high state spending.
Updated at 12.45pm AESTUpdated at 12.45pm AEST
12.22pm AEST03:2212.22pm AEST03:22
Greek finance minister, Yanis Varoufakis, has claimed the successful No campaign is a “majestic, big YES to a democratic, rational Europe.”Greek finance minister, Yanis Varoufakis, has claimed the successful No campaign is a “majestic, big YES to a democratic, rational Europe.”
Varoufakis accuses Greece’s creditors of attempting to “humiliate” the leftwing government by forcing stringent austerity, and dragging them into an agreement which “offers no firm commitment to a sensible, well-defined debt restructure.”Varoufakis accuses Greece’s creditors of attempting to “humiliate” the leftwing government by forcing stringent austerity, and dragging them into an agreement which “offers no firm commitment to a sensible, well-defined debt restructure.”
He further writes:He further writes:
Today’s referendum delivered a resounding call for a mutually beneficial agreement between Greece and our European partners. We shall respond to the Greek voters’ call with a positive approach to:Today’s referendum delivered a resounding call for a mutually beneficial agreement between Greece and our European partners. We shall respond to the Greek voters’ call with a positive approach to:
Updated at 12.30pm AESTUpdated at 12.30pm AEST
12.10pm AEST03:1012.10pm AEST03:10
'We're going to hit the iceberg''We're going to hit the iceberg'
A great short film here from John Domokos.A great short film here from John Domokos.
From the Syriza faithful to the run-down docks of Piraeus and the middle-class district of Faliro, Greeks spent the day of the referendum locked in debate, suspense and catharsis.From the Syriza faithful to the run-down docks of Piraeus and the middle-class district of Faliro, Greeks spent the day of the referendum locked in debate, suspense and catharsis.
For some it was a day they sent a message to Europe that they will ‘not be intimidated’. But many Greeks fear trouble lies ahead. As one voter said, both a yes and no outcome would result in calamity: ‘We’re three metres from the iceberg and we’re here to be asked if we’re going to go right or left.’ Either way, he said, ‘we’re going to hit the iceberg’.For some it was a day they sent a message to Europe that they will ‘not be intimidated’. But many Greeks fear trouble lies ahead. As one voter said, both a yes and no outcome would result in calamity: ‘We’re three metres from the iceberg and we’re here to be asked if we’re going to go right or left.’ Either way, he said, ‘we’re going to hit the iceberg’.
Updated at 12.22pm AESTUpdated at 12.22pm AEST
11.55am AEST02:5511.55am AEST02:55
Shanghai stocks have jumped almost 8%. The government boosts AFP refers to are emergency measures taken to prevent a possible stock market crash in the world’s second-largest economy. It’s not directly related to Greece, but could still have an effect on world markets.Shanghai stocks have jumped almost 8%. The government boosts AFP refers to are emergency measures taken to prevent a possible stock market crash in the world’s second-largest economy. It’s not directly related to Greece, but could still have an effect on world markets.
From Reuters: In an extraordinary weekend of policy moves, brokerages and fund managers vowed to buy massive amounts of stocks, helped by China’s state-backed margin finance company which in turn would be aided by a direct line of liquidity from the central bank.From Reuters: In an extraordinary weekend of policy moves, brokerages and fund managers vowed to buy massive amounts of stocks, helped by China’s state-backed margin finance company which in turn would be aided by a direct line of liquidity from the central bank.
China has also orchestrated a halt to new share issues, with dozens of firms scrapping their IPO plans in separate but similarly worded statements over the weekend, in a tactic authorities have used before to support markets.China has also orchestrated a halt to new share issues, with dozens of firms scrapping their IPO plans in separate but similarly worded statements over the weekend, in a tactic authorities have used before to support markets.
#BREAKING Shanghai stocks surge 7.82% at open after govt boosts#BREAKING Shanghai stocks surge 7.82% at open after govt boosts
11.37am AEST02:3711.37am AEST02:37
Europe dodged a bullet with the No result, and its supporters should be breathing a sigh of relief, Paul Krugman writes for the New York Times.Europe dodged a bullet with the No result, and its supporters should be breathing a sigh of relief, Paul Krugman writes for the New York Times.
Krugman’s colourful take on the events of the last day is well worth a read, but here is a snippet. He continues:Krugman’s colourful take on the events of the last day is well worth a read, but here is a snippet. He continues:
Of course, that’s not the way the creditors would have you see it. Their story, echoed by many in the business press, is that the failure of their attempt to bully Greece into acquiescence was a triumph of irrationality and irresponsibility over sound technocratic advice.Of course, that’s not the way the creditors would have you see it. Their story, echoed by many in the business press, is that the failure of their attempt to bully Greece into acquiescence was a triumph of irrationality and irresponsibility over sound technocratic advice.
But the campaign of bullying — the attempt to terrify Greeks by cutting off bank financing and threatening general chaos, all with the almost open goal of pushing the current leftist government out of office — was a shameful moment in a Europe that claims to believe in democratic principles. It would have set a terrible precedent if that campaign had succeeded, even if the creditors were making sense.But the campaign of bullying — the attempt to terrify Greeks by cutting off bank financing and threatening general chaos, all with the almost open goal of pushing the current leftist government out of office — was a shameful moment in a Europe that claims to believe in democratic principles. It would have set a terrible precedent if that campaign had succeeded, even if the creditors were making sense.
What’s more, they weren’t. The truth is that Europe’s self-styled technocrats are like medieval doctors who insisted on bleeding their patients — and when their treatment made the patients sicker, demanded even more bleeding.What’s more, they weren’t. The truth is that Europe’s self-styled technocrats are like medieval doctors who insisted on bleeding their patients — and when their treatment made the patients sicker, demanded even more bleeding.
Ouch.Ouch.
Updated at 11.38am AESTUpdated at 11.38am AEST
11.32am AEST02:3211.32am AEST02:32
As we continue our watch of the Asian/Pacific markets, the Malaysian ringgit has been given the unenviable title of “worst currency” this morning, according to the FT.As we continue our watch of the Asian/Pacific markets, the Malaysian ringgit has been given the unenviable title of “worst currency” this morning, according to the FT.
Worst currency this morning: Malaysian ringgit. Now at lowest since scrapping US$ peg in 2005. http://t.co/G3tIX4YlrM pic.twitter.com/NufCKtw1UsWorst currency this morning: Malaysian ringgit. Now at lowest since scrapping US$ peg in 2005. http://t.co/G3tIX4YlrM pic.twitter.com/NufCKtw1Us
11.21am AEST02:2111.21am AEST02:21
Justin McCurryJustin McCurry
Japan’s Nikkei stock index has mounted a slight recovery after dropping 1.5% in early trading Monday, as Asian markets were jolted by the uncertainty created by Greece’s “no” vote in Sunday’s austerity referendum.Japan’s Nikkei stock index has mounted a slight recovery after dropping 1.5% in early trading Monday, as Asian markets were jolted by the uncertainty created by Greece’s “no” vote in Sunday’s austerity referendum.
The Nikkei 225 was trading down 1.4% at 20256.69, having earlier fallen 339.64 points to 20,200.15, a day after Greece voted to rejected the eurozone’s terms for the country remaining in the single currency.The Nikkei 225 was trading down 1.4% at 20256.69, having earlier fallen 339.64 points to 20,200.15, a day after Greece voted to rejected the eurozone’s terms for the country remaining in the single currency.
South Korea’s Kospi was down 0.9% at 2,085.67.South Korea’s Kospi was down 0.9% at 2,085.67.
11.08am AEST02:0811.08am AEST02:08
Nils Pratley, the Guardian’s financial editor, says the current crisis has pushed the financial world back to the wild markets of the 2008 financial crisis.Nils Pratley, the Guardian’s financial editor, says the current crisis has pushed the financial world back to the wild markets of the 2008 financial crisis.
You can read Nils’ analysis in full here, but below is a snippet on bond markets, which he says will take centre stage.You can read Nils’ analysis in full here, but below is a snippet on bond markets, which he says will take centre stage.
That is where Grexit worries will be keenest. If Greece could be on the way out of the single currency, will investors be less willing to hold the debt of other eurozone states carrying heavy debt loads? The sovereign debt of Spain, Italy, Portugal and Ireland will be closely watched for knock-on effects. Will there be contagion?That is where Grexit worries will be keenest. If Greece could be on the way out of the single currency, will investors be less willing to hold the debt of other eurozone states carrying heavy debt loads? The sovereign debt of Spain, Italy, Portugal and Ireland will be closely watched for knock-on effects. Will there be contagion?
All eyes will turn to the European Central Bank. First, to see if it cuts off support for Greek banks. Second, to learn if it is prepared to intervene to protect the bonds of other eurozone stragglers. Last Sunday, when Greek prime minister Alexis Tsipras called the referendum, the ECB and the eurogroup ministers pledged to react, if needed, to avoid a dangerous fall-out in debt markets.All eyes will turn to the European Central Bank. First, to see if it cuts off support for Greek banks. Second, to learn if it is prepared to intervene to protect the bonds of other eurozone stragglers. Last Sunday, when Greek prime minister Alexis Tsipras called the referendum, the ECB and the eurogroup ministers pledged to react, if needed, to avoid a dangerous fall-out in debt markets.
Pratley also makes an interesting point that while the euro will “almost certainly fall in value initially” there is another school of though which says “the single currency would be strengthened in the long run by the departure of its weakest member.”Pratley also makes an interesting point that while the euro will “almost certainly fall in value initially” there is another school of though which says “the single currency would be strengthened in the long run by the departure of its weakest member.”
10.58am AEST01:5810.58am AEST01:58
The Australian stock exchange fell sharply on Monday’s open, not long after the final vote was counted (not that 100% was needed to see the overwhelming response). Below is a graph from the ASX website.The Australian stock exchange fell sharply on Monday’s open, not long after the final vote was counted (not that 100% was needed to see the overwhelming response). Below is a graph from the ASX website.
The Australian dollar dipped to a six-year low of US$0.7484 in early trading but has recovered to 0.7509.The Australian dollar dipped to a six-year low of US$0.7484 in early trading but has recovered to 0.7509.
The euro, not surprisingly, was down 0.8% at $1.1015 but off an early low of $1.0967. It had initially dropped around 1.5% against the yen – which is seen as a safe haven.The euro, not surprisingly, was down 0.8% at $1.1015 but off an early low of $1.0967. It had initially dropped around 1.5% against the yen – which is seen as a safe haven.
The US dollar also recouped its early drop to be only a touch softer at 122.48 yen.The US dollar also recouped its early drop to be only a touch softer at 122.48 yen.
Updated at 10.59am AESTUpdated at 10.59am AEST
10.39am AEST01:3910.39am AEST01:39
In a delightfully headlined post, the Financial Times says early moves don’t suggest a panic in the Asian markets. It also notes:In a delightfully headlined post, the Financial Times says early moves don’t suggest a panic in the Asian markets. It also notes:
“The hope for Alexis Tsipras, prime minister, is that the vote galvanises support for his anti-austerity agenda and forces Athens’ creditors to make concessions.“The hope for Alexis Tsipras, prime minister, is that the vote galvanises support for his anti-austerity agenda and forces Athens’ creditors to make concessions.
But it’s questionable whether banks will re-open on Tuesday (after a holiday today), as planned. If they don’t, the “no” vote could fast-track a Grexit and see Greece revive its only currency.”But it’s questionable whether banks will re-open on Tuesday (after a holiday today), as planned. If they don’t, the “no” vote could fast-track a Grexit and see Greece revive its only currency.”
Read more from ‘Fast Asia Open: Oxi oxi oxi, oi oi oi’ here.Read more from ‘Fast Asia Open: Oxi oxi oxi, oi oi oi’ here.
10.27am AEST01:2710.27am AEST01:27
SummarySummary
While we await further market news, let’s have a look back at the extraordinary last few hours. My colleague Graeme Wearden, and before him Julia Kollewe, drove live coverage of the vote count and reaction in the streets of Greece and around the world.While we await further market news, let’s have a look back at the extraordinary last few hours. My colleague Graeme Wearden, and before him Julia Kollewe, drove live coverage of the vote count and reaction in the streets of Greece and around the world.
You can relive the night blow by blow here, or Graeme’s summary is below.You can relive the night blow by blow here, or Graeme’s summary is below.
Greece has delivered a resounding No to its creditors, in a move that has stunned the eurozone tonight and may shake the financial markets.Greece has delivered a resounding No to its creditors, in a move that has stunned the eurozone tonight and may shake the financial markets.
In the last few minutes, the last ballot papers were counted. And No campaign has exceeded all expectations by securing 61.31% of the vote [here’s the official count].In the last few minutes, the last ballot papers were counted. And No campaign has exceeded all expectations by securing 61.31% of the vote [here’s the official count].
As our interactive shows, every area of Greece has voted to reject the proposals of Greece’s creditors and seek a better deal.As our interactive shows, every area of Greece has voted to reject the proposals of Greece’s creditors and seek a better deal.
Prime minister Alexis Tsipras has declared that it’s a historic day for Greece, which shows that democracy cannot be blackmailed.Prime minister Alexis Tsipras has declared that it’s a historic day for Greece, which shows that democracy cannot be blackmailed.
In a TV address, Tsipras has also vowed to begin negotiations with creditors to reach a sustainable deal to tackle Greece’s debt crisis.In a TV address, Tsipras has also vowed to begin negotiations with creditors to reach a sustainable deal to tackle Greece’s debt crisis.
“You made a very brave choice.“You made a very brave choice.
“The mandate you gave me is not the mandate of a rupture with Europe, but a mandate to strengthen our negotiating position to seek a viable solution.”“The mandate you gave me is not the mandate of a rupture with Europe, but a mandate to strengthen our negotiating position to seek a viable solution.”
Greece’s future in the eurozone looks more perilous than ever, and the next 48 hours could be critical.Greece’s future in the eurozone looks more perilous than ever, and the next 48 hours could be critical.
German chancellor Angela Merkel and French president Francois Hollande will meet in Paris on Monday night.German chancellor Angela Merkel and French president Francois Hollande will meet in Paris on Monday night.
Then on Tuesday, eurozone leaders will debate the crisis at an emergency summit. Eurozone finance ministers will hold a Eurogroup meeting that afternoon.Then on Tuesday, eurozone leaders will debate the crisis at an emergency summit. Eurozone finance ministers will hold a Eurogroup meeting that afternoon.
Eurogroup president Jeroen Dijssebloem has already criticised the result of the referendum, warning:Eurogroup president Jeroen Dijssebloem has already criticised the result of the referendum, warning:
“I take note of the outcome of the Greek referendum. This result is very regrettable for the future of Greece.”“I take note of the outcome of the Greek referendum. This result is very regrettable for the future of Greece.”
But democratic senator Bernie Sanders has hailed the result as a decisive vote against austerity.But democratic senator Bernie Sanders has hailed the result as a decisive vote against austerity.
A series of financial analysts have warned tonight that Greece is likely to exit the eurozone. As Barclays warned:A series of financial analysts have warned tonight that Greece is likely to exit the eurozone. As Barclays warned:
“While Chancellor Merkel and President Hollande are scheduled to meet tomorrow, we argue that EMU exit now is the most likely scenario….”“While Chancellor Merkel and President Hollande are scheduled to meet tomorrow, we argue that EMU exit now is the most likely scenario….”
Finance minister Yanis Varoufakis, though, has denied this is an option:Finance minister Yanis Varoufakis, though, has denied this is an option:
Updated at 10.29am AESTUpdated at 10.29am AEST
10.20am AEST01:2010.20am AEST01:20
Japan, S Korea, Australia markets open downJapan, S Korea, Australia markets open down
Futures tradingFutures trading
The Guardian’s Tokyo correspondent, Justin McCurry, has just filed the below update on Japan’s market today.The Guardian’s Tokyo correspondent, Justin McCurry, has just filed the below update on Japan’s market today.
Japan’s Nikkei stock index opened down more than 300 points on Monday, a day after Greece voted to rejected the eurozone’s terms for the country remaining in the single currency.Japan’s Nikkei stock index opened down more than 300 points on Monday, a day after Greece voted to rejected the eurozone’s terms for the country remaining in the single currency.
The Nikkei mounted a recovery last week after after posting its second-biggest daily drop this year after Greece and its international creditors failed to make a breakthrough in bailout talks.The Nikkei mounted a recovery last week after after posting its second-biggest daily drop this year after Greece and its international creditors failed to make a breakthrough in bailout talks.
Japan’s finance minister, Taro Aso, said last week he did not expect dramatic falls in Japanese share prices or a sudden surge in the yen if Greece defaulted but stayed in the eurozone.Japan’s finance minister, Taro Aso, said last week he did not expect dramatic falls in Japanese share prices or a sudden surge in the yen if Greece defaulted but stayed in the eurozone.
He warned, however, that the impact on Japanese and other markets could be big if Athens left the single currency.He warned, however, that the impact on Japanese and other markets could be big if Athens left the single currency.
10.05am AEST01:0510.05am AEST01:05
Mohamed El-Erian, the former boss of the world’s biggest bond trader Pimco and now chief economic adviser at insurance giant Allianz, said investors should brace for a major global equity selloff.Mohamed El-Erian, the former boss of the world’s biggest bond trader Pimco and now chief economic adviser at insurance giant Allianz, said investors should brace for a major global equity selloff.
“Yes, you will see one. With the extent and duration a function of whether the ECB steps in with new anti-contagion measures,” he writes for Bloomberg.“Yes, you will see one. With the extent and duration a function of whether the ECB steps in with new anti-contagion measures,” he writes for Bloomberg.
“Without huge emergency assistance from the European Central Bank – a decision that faces long odds – the government will find it hard to get money to the country’s automated teller machines, let alone re-open the banks.”“Without huge emergency assistance from the European Central Bank – a decision that faces long odds – the government will find it hard to get money to the country’s automated teller machines, let alone re-open the banks.”
Over to you Mario Draghi.Over to you Mario Draghi.
Updated at 10.14am AESTUpdated at 10.14am AEST
10.01am AEST01:0110.01am AEST01:01
All votes counted - Greece votes noAll votes counted - Greece votes no
All referendum votes have now been counted, with a final result of 61.31% voting no, to 38.69% yes.All referendum votes have now been counted, with a final result of 61.31% voting no, to 38.69% yes.
9.56am AEST00:569.56am AEST00:56
Eyes are now moving towards the world markets, particularly those in Asia set to open in the next few hours. Tokyo and Korea will be first in the next few minutes and along with Shanghai and Hong Kong later today, are ones to watch.Eyes are now moving towards the world markets, particularly those in Asia set to open in the next few hours. Tokyo and Korea will be first in the next few minutes and along with Shanghai and Hong Kong later today, are ones to watch.
Unsurprisingly the euro fell sharply in Asia, Reuters has already reported.Unsurprisingly the euro fell sharply in Asia, Reuters has already reported.
The Japanese government said it was ready to respond as needed in markets and was in close touch with other nations.The Japanese government said it was ready to respond as needed in markets and was in close touch with other nations.
The euro was down 0.9 percent at $1.1012 but off an early low of $1.0967. It had initially dropped around 1.5 percent on the safe-haven yen only to find a big buy order waiting, which pared its losses to 134.53.The euro was down 0.9 percent at $1.1012 but off an early low of $1.0967. It had initially dropped around 1.5 percent on the safe-haven yen only to find a big buy order waiting, which pared its losses to 134.53.
Likewise, the dollar recouped its early drop to be only a touch softer at 122.34 yen. The dollar index added 0.3 percent to 96.434.Likewise, the dollar recouped its early drop to be only a touch softer at 122.34 yen. The dollar index added 0.3 percent to 96.434.
9.52am AEST00:529.52am AEST00:52
Prime minister Alexis Tsipras has addressed the Greek nation, telling voters they made a “brave choice” and that “democracy can not be blackmailed.”Prime minister Alexis Tsipras has addressed the Greek nation, telling voters they made a “brave choice” and that “democracy can not be blackmailed.”
However he added: “I am fully aware that the mandate here is not one to break with Europe by a mandate to strengthen our negotiating position to seek a viable solution.”However he added: “I am fully aware that the mandate here is not one to break with Europe by a mandate to strengthen our negotiating position to seek a viable solution.”
9.52am AEST00:529.52am AEST00:52
Greek voters have overwhelmingly rejected the extra austerity measures demanded by creditors in return for bailout funds. In a referendum held with just eight days notice, more than 60% have voted no, or oxi.Greek voters have overwhelmingly rejected the extra austerity measures demanded by creditors in return for bailout funds. In a referendum held with just eight days notice, more than 60% have voted no, or oxi.
No supporters have taken to the streets in celebration, while Antonis Samaras, the head of the New Democracy party who campaigned for a Yes vote, has resigned.No supporters have taken to the streets in celebration, while Antonis Samaras, the head of the New Democracy party who campaigned for a Yes vote, has resigned.
Shocked EU finance ministers have called an emergency meeting for Tuesday, as analysts fear collapse of the Greek banking system.Shocked EU finance ministers have called an emergency meeting for Tuesday, as analysts fear collapse of the Greek banking system.