Share

European stocks drop at open after Greek vote

London - European stock markets slid at the start of trading on Monday after eurozone member Greece rejected creditors' austerity demands in a weekend referendum.

Frankfurt's DAX 30 shed 2.11% to 10 825.06 points and the CAC 40 in Paris fell 2.06% to 4 709.01 points. Outside the eurozone, the FTSE 100 index lost 1.07% to stand at 6 515.67 compared with Friday's close.

The vote result has fuelled fears the country will crash out of the eurozone, but the euro rallied after Finance Minister Yannis Varoufakis announced his shock resignation.

READ: Greek finance minister quits after 'no' to bailout terms

While the referendum was a victory for the government, Varoufakis suggested he could be an impediment to future debt talks.

"Fear of the unknown, following the decisive Greek rejection of austerity, has seen global stock markets drop - however the freefall that was predicted has not materialised," said Rebecca O'Keeffe, head of investment at stockbroker Interactive Investor.

"The relatively subdued reaction from the equity and bond markets belies the difficult position that European leaders find themselves in.

Any significant compromise by Europe towards Greek debt forgiveness runs the risk of causing a dramatic change in European politics if extreme left-wing parties in Spain and beyond choose to follow Syriza's tactics.

"However, holding firm on their existing policy stance threatens to see Greek banks run out of money within days which would send Greece over the edge," O'Keeffe added.

Greek voters overwhelmingly rejected international creditors' tough bailout terms Sunday, but premier and Syriza leader Alexis Tsipras insisted the result does not mean a "rupture" with Europe despite fears it will end in a "Grexit" from the eurozone.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.89
+0.2%
Rand - Pound
23.87
+0.1%
Rand - Euro
20.39
+0.2%
Rand - Aus dollar
12.33
+0.1%
Rand - Yen
0.12
+0.1%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders