Greece ‘No’ Vote Hits Euro to U.S. Futures Amid Flight to Safety
By Emma O’Brien and Benjamin Purvis. Greek voters’ rejection of austerity coursed through financial markets Monday, as Asian stocks and U.S. index futures slipped with the euro and crude oil amid flight to the safest assets. Chinese index futures jumped after the country stepped up efforts to arrest an equity selloff.
The MSCI Asia Pacific Index lost 1 percent by 10:10 a.m. in Tokyo, with Japanese and Korean gauges falling more than 1 percent. Standard & Poor’s 500 Index futures slid 1.2 percent. The euro was down 0.6 percent versus the dollar, paring an earlier drop of as much as 1.3 percent as high-yielding currencies declined while the yen advanced. Treasuries and Asian bonds jumped with credit risk. U.S. oil tumbled 3 percent. FTSE China A50 Index futures rallied 6.3 percent.
Greeks defied opinion polls predicting a tight race, with more than 60 percent voting to reject austerity measures required to win another bailout package. The result means Greece’s exit from the currency union is now the base-case scenario, JPMorgan Chase & Co. said, with European leaders calling for a summit. China suspended initial public offerings and brokerages pledged to buy shares in weekend measures aimed at halting the steepest plunge in local stocks since 1992.
“It’s definitely risk off, markets don’t like uncertainty,” Kumar Palghat, managing director of Kapstream Capital Ltd., which oversees the equivalent of about $6.9 billion in Sydney, said in a Bloomberg TV interview. “The question from the market is, is this going to continue or are they going to come up with a solution? China is more important to Asia than Greece is, but remember we live in a globalized world, so what happens in Greece affects other countries and other regions as well” . . .
With all of the vote counted, support for the “no” camp was at 61 percent, while 39 percent voted “yes” to the demands, according results on the Greek Interior Ministry website. A poll commissioned by Bloomberg had 43 percent voting “no” and 42.5 percent intending to accept creditors’ conditions. The survey had a three percentage-point margin of error. (Read more from “Greece ‘No’ Vote Hits Euro to U.S. Futures Amid Flight to Safety” HERE)
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Sugar, Flour, Rice: Panicked Greeks Stock up on Essentials
By Pauline Froissart. Greeks were hoarding cash and food Saturday amid mounting fears the economy could collapse, cracking open their wallets only to stock up on essentials and stripping supermarket shelves in the process.
Mothers, elderly men and university students were spotted pushing heavily overloaded trolleys or coming out of shops weighed down by bags of food, with essentials such as sugar, flour and pasta top of the list.
In the well-off area of Glyfada in Athens residents appeared to have panicked, thrusting everything from vast rolls of toilet paper to multiple packs of lentils into their carts.
“Most people are buying food now because they fear the worst,” said Andreas Koutras, a 51-year old who works in finance, referring to a referendum Sunday on Greece’s bailout which could seal its financial fate.
AFP photographs showed rows upon rows of empty shelves in supermarkets and shoppers said they were taking no chances, snapping up canned milk, chocolate and rice — anything non-perishable that could be stored. (Read more from this story HERE)
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