European stocks tumbled this morning as Greek voters rejected austerity measures demanded by creditors for a bailout package. The ESTX 50 (-1.44%), UK markets (-0.71%), CAC 40 (-1.37%) and the Dax (-1.09%) all posted losses in early trading. 61% of Greek voters backed Prime Minister Alexis Tsipras’s rejection of further spending cuts and tax increases in Sunday’s referendum. Credit Suisse Group AG estimated that the probability of Greece leaving the euro would be 75% with a “no” vote. While Greece accounts for less than 2% of the euro zone’s output, an exit would set a precedent for other nations that membership is reversible. European banks were among the hardest hit. Banco Popolare SC led the drop with a -3.9%, Unicredit was down -3.5%, while Banco Comercial Portugues SA retreated -3.1%.
Asian stocks fell after Greece voted to reject further austerity. The Nikkei 225 (-2.08%), Hang Seng (-3.30%) and the S&P/ASX 200 (-1.14%) all dropped. Asahi Glass Co, which gets about 21% of sales from Europe, dropped -2.7% in Tokyo. BHP Billiton Ltd slipped -2.3% in Sydney as copper futures headed for a second day of declines in London. Chinese brokerage Guolian Securities Co tumbled -37% in the worst major Hong Kong trading debut this year. Hong Kong Exchanges & Clearing Ltd tumbled -12%, on course for its biggest decline since 2008, after Goldman sachs Group Inc recommended selling the stock. Tencent Holdings Ltd fell -7.5%.
US markets were closed on Friday for the Independence Day public holiday.
Morning Spread 8th March 2017 European shares traded flat this morning, the modest moves masking significant results driven games by several companies on a bust day for European earnings.
Morning Spread 2nd November 2016 Asian stocks followed global equities lower despite gauges of manufacturing in China topping estimates and the Bank of Japan maintained its record stimulus program.
Morning Spread 1st November 2016 Asian stocks were mixed as declines in oil prices dragged energy shares lower and investor anxiety grew over next week’s US presidential election.
Morning Spread 28th October 2016 Asian stocks fell as oil explorers pushed down Hong Kong gauges, while investors digested earnings from several companies.
Morning Spread 27th October 2016 US stocks were mixed following the release of earnings from several companies.
Morning Spread 24th October 2016 US stocks were little changed as a record day for Microsoft and earnings from McDonald’s helped offset a fall in energy and healthcare shares.
Morning Spread 19th October 2016 Asian shares rose as a barrage of Chinese data confirmed the economy had stabilised on the back of government spending and a hot housing market, even if worries about debt continue to mount.
Morning Spread 10th October 2016 Asian stocks were mixed following the second US presidential debate between Hilary Clinton and Donald Trump.
Morning Spread 5th October 2016 Most Asian stocks outside Japan slid on concern central banks will reduce stimulus, while the Nikkei climbed after the yen weakened.
Morning Spread 27th September 2016 Asian stocks advanced with investors viewing Democratic candidate Hillary Clinton as having gotten the upper hand in the first US presidential debate.