‘ No’ vote hangover to come
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.