Greek crisis hurts stocks
MORE than $ 20 billion has been wiped off the Australian stock market after Greece shocked investors with an overwhelming rejection of austerity measures that could see the country headed for a messy exit from the euro zone.
More than 60 per cent of people voted against harsh bailout conditions in Sunday’s referendum.
Australia was one of the first markets to react to the news and both the S& P/ ASX 200 and All Ordinaries finished the day about 1 per cent lower.
Meanwhile, the Australian dollar slipped below 75 US cents for the first time since mid- 2009.
Every sector of the Australian market finished the day in negative territory, with the exception of gold miners, which tend to do well during times of uncertainty because of the metal’s reputation as a “safe haven” asset.
OptionsXpress market analyst Ben Le Brun said despite the slide, most investors were taking a wait- and- see approach to the developments in Greece.