‘ No’ vote hang­over to come

Townsville Bulletin - - NEWS -

ECON­O­MISTS warned the reper­cus­sions of the Greek “no” vote were yet to be fully felt.

Fear sell­ing hit mar­kets as fears mounted Greece could be booted from the eu­ro­zone.

The tur­moil sent the ASX200 down by 1.14 per cent, while the broader All Or­di­nar­ies in­dex fell 1.17 per cent.

The grim trad­ing came as the Greek- Aus­tralian who has been a pow­er­ful driver of the no- vote – Greek fi­nance min­is­ter Ya­nis Varo­ufakis – an­nounced his de­par­ture from the top eco­nomic port­fo­lio.

The former Univer­sity of Syd­ney lec­turer said Eurogroup min­is­ters wanted him “ab­sent” from meet­ings to re­solve the crises.

He said he hoped his ab­sence would help Greece cut a fairer deal with cred­i­tors.

“I shall wear the cred­i­tors’s’ loathing with pride,” he wrote on his blog. “I con­sider it my duty to help ( Prime Min­is­ter) Alexis Tsipras ex­ploit, as he sees fit, the cap­i­tal that the Greek peo­ple granted us.”

With global mar­kets fear­ing there could be a domino ef­fect of other coun­tries tum­bling outt of the eu­ro­zone, the Aus­tralian dol­lar sank be­low US75¢ for the first time since 2009 as in­ter­na­tional sell­ers went back to safe haven cur­ren­cies.

“We see sig­nif­i­cant po­lit­i­cal al risks in the days and weeks ahead,” West­pac global FX and com­mod­ity strat­egy head Robert Ren­nie said. “Mar­kets start the week in un­charted ter­ri­tory.

“We ex­pect an even more com­bat­ive tone to per­vade in the side­lines of ne­go­ti­a­tions.s Gaug­ing Ger­many’s po­si­tion will be crit­i­cal here.”

In­vestors were brac­ing for car­nage on Euro­pean mar­kets last night, where the real pointy end of the height­en­ing of the debt crises is ex­pected to be felt.

A hasty meet­ing called by French and Ger­man min­is­ters was set to dis­cuss the next step for Europe as the prospect of a bet­ter deal for Greece or an exit from the sin­gle cur­rency looms.

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