Euro falls as Greece overwhelmingly rejects bailout offer, Shanghai Composite takes further blow
July 6, 2015 7:06 am
The Greek people voted overwhelmingly on Sunday to reject the proposed terms of a bailout, risking financial ruin in a show of defiance that could fracture Europe.
With nearly half of the votes counted, official figures showed 61 percent of Greeks rejecting the bailout offer. An official interior ministry projection confirmed the figure as close to the expected final count.
This leaves Greece in uncharted waters: risking financial and political isolation within the Euro zone and a banking collapse if creditors refuse further aid, which couold result in further social unrest and disorder.
But for millions of Greeks the outcome was an angry message to creditors that Greece can longer accept repeated rounds of austerity that, in five years, had left one in four without a job.
Prime Minister Alexis Tsipras has denounced the price paid for aid as “blackmail” and a national “humiliation”.
The Euro fell sharply on Monday after Greeks looked to have overwhelmingly rejected the austerity measures demanded in return for bailout money.
The single block currency dropped around1.4 percent against the greenback to $1.0955, and by 2.1 percent against the yen to 133.50 yen.
German bonds may surge as European markets come to terms with the Greek peoples choice on a refusal of the bailout plans on Monday as investors seek haven assets in light to the referendum results.
Over in Asia China’s stock markets face a make-or-break week after officials rolled out an unprecedented series of steps at the weekend to prevent a full-blown stock market crash that would threaten the world’s second-largest economy.
The government is anxiously awaiting the market opening on Monday to see if the new measures will halt a 30 percent plunge in the last three weeks, or if panicky investors who borrowed heavily to speculate on stocks will continue to sell.
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.
The Shanghai Composite Index was last at 4,500 on June 25, and is now trading 22 percent lower which signals a technical bear market having fallen over 20% from its highs.
Twenty-eight companies halted their IPOs, according to filings to the nation’s two exchanges Saturday. A group of 21 brokerages led by Citic Securities Co. will invest at least 120 billion yuan ($19.3 billion) in a stock-market fund, the Securities Association of China said the same day. Executives from 25 mutual funds vowed to buy shares and hold them for at least a year, according to an industry group association. These measures are aimed at limiting supply to an already over supplied market.
The Greek people voted overwhelmingly on Sunday to reject the proposed terms of a bailout, risking financial ruin in a show of defiance that could fracture Europe.
With nearly half of the votes counted, official figures showed 61 percent of Greeks rejecting the bailout offer. An official interior ministry projection confirmed the figure as close to the expected final count.
This leaves Greece in uncharted waters: risking financial and political isolation within the Euro zone and a banking collapse if creditors refuse further aid, which couold result in further social unrest and disorder.
But for millions of Greeks the outcome was an angry message to creditors that Greece can longer accept repeated rounds of austerity that, in five years, had left one in four without a job.
Prime Minister Alexis Tsipras has denounced the price paid for aid as “blackmail” and a national “humiliation”.
The Euro fell sharply on Monday after Greeks looked to have overwhelmingly rejected the austerity measures demanded in return for bailout money.
The single block currency dropped around1.4 percent against the greenback to $1.0955, and by 2.1 percent against the yen to 133.50 yen.
German bonds may surge as European markets come to terms with the Greek peoples choice on a refusal of the bailout plans on Monday as investors seek haven assets in light to the referendum results.
Over in Asia China’s stock markets face a make-or-break week after officials rolled out an unprecedented series of steps at the weekend to prevent a full-blown stock market crash that would threaten the world’s second-largest economy.
The government is anxiously awaiting the market opening on Monday to see if the new measures will halt a 30 percent plunge in the last three weeks, or if panicky investors who borrowed heavily to speculate on stocks will continue to sell.
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.
The Shanghai Composite Index was last at 4,500 on June 25, and is now trading 22 percent lower which signals a technical bear market having fallen over 20% from its highs.
Twenty-eight companies halted their IPOs, according to filings to the nation’s two exchanges Saturday. A group of 21 brokerages led by Citic Securities Co. will invest at least 120 billion yuan ($19.3 billion) in a stock-market fund, the Securities Association of China said the same day. Executives from 25 mutual funds vowed to buy shares and hold them for at least a year, according to an industry group association. These measures are aimed at limiting supply to an already over supplied market.
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