The euro dropped on Monday and European shares were expected to
open sharply lower, a day after Greeks overwhelmingly voted against
their international creditors' conditions for further bailout
aid.
The bloc's single currency fell as low as $1.0952 during Asian
trading hours, before recovering slightly to trade around 0.5%
lower on the day at $1.105 early in Europe.
Germany's DAX, France's CAC-40 and London's FTSE 100 were all
seen opening between 100 and 300 points lower, according to
brokers.
More than 61% of Greeks voted "no" in Sunday's referendum on
austerity measures and other overhauls that European and
International Monetary Fund officials had demanded in recent
talks.
While the outcome spurred popular celebrations into the night
across downtown Athens and other Greek cities, many strategists
said that this result pushes Greece further toward an exit from the
euro area.
Deutsche Bank strategist Francis Yared said that the "risk of a
negative outcome [for Greece] has increased materially."
BNP Paribas strategists said that there will be "significant
uncertainty" over the next 48 hours, which others said would spur
demand for assets considered safest during times of stress on
Monday, such as German government bonds.
Government bonds in Italy, Spain and Portugal—countries seen
most vulnerable to any Greek contagion—are broadly expected to
fall.
Greece's stock markets were closed last week and won't reopen
until Tuesday at the earliest, along with the country's banks.
Trading in Greek government bonds has also been halted on some
trading platforms after they tumbled last Monday.
Early Monday Brent crude was 1.4% lower on the day at $59.48 per
barrel. Gold, another asset commonly sought during times of
volatility, was 0.3% higher at $1,167.30 per troy ounce.
Write to Josie Cox at josie.cox@wsj.com
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