MARKETS FALL

STOCK markets and oil prices fell after Greece’s voters overwhelmingly rejected reform proposals from international creditors, a verdict that’s reinforced fears the country may be heading out of the euro currency.

Still, the market declines are not as dramatic as many had feared, something analysts are crediting to the resignation of the Greek finance minister, which might help bailout talks resume.

In Europe, Germany’s Dax fell 1.4 per cent to 10,908 while the Cac-40 in France fell 1.6 per cent to 4,730. The FTSE 100 index of leading British shares was 0.5 per cent lower at 6,553. Wall Street closed down but narrowed its losses late on, the Dow Jones ending 0.26 lower while the broader S&P 500 eased 0.39 per cent.

There was little evidence Greece’s troubles might affect other eurozone countries imminently, with government borrowing rates for Italy and Spain rising only marginally.

Oil markets, however, took a big hit, with North Sea Brent crude down 6.6 per cent to $56.53 a barrel.

With Greek banks still shuttered and the European Central Bank under pressure to stop its emergency liquidity measures, Greece may not have long to secure a deal with creditors. A meeting of the eurozone’s 19 leaders has been called for today and it seems the creditors are expecting Greece to offer new proposals to restart talks.

The pound was a cent up against the euro, at €1.41.

Earlier in Asia, China’s Shanghai Composite index rose 2.4 per cent to 3,775.91 while Japan’s Nikkei 225 dropped 2.1 per cent to 20,212.12.