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Greece economic fallout already ‘built into’ markets

 supporter of the "OXI" or "No" vote wears a Greek national flag outside parliament on Sunday. Markets shrugged at Sunday's referendum vote.

Global markets barely shrugged Monday after Greek voters overwhelmingly rejected the terms of a bailout package from the country\’s creditors.

The stop by U.S. and European markets wasn\’t nearly as bad as some analysts had feared, following Sunday\’s referendum that saw 61.3 percent of Greeks vote ‘no’ to a series of tax cuts and reforms that would save Greece from defaulting on its debt.

The S&P 500 fell 0.39 percent, or eight points, to two,068.76, while the S&P/TSX Composite Index fell 0.60 per cent, or 88.82 points, to 14,593.57. In the clearest sign that investors were indifferent towards the referendum results, the euro fell only 0.4 per cent.

\”After five years, you have to believe a stride of the news from Greece has already been built into the marketplace,\” Bruce Bittles, chief investment strategist at Milwaukee-based Robert W. Baird & Co. \”How many times can you be concerned about the same news? It loses it\’s effectiveness within the near term.\”

Immediately following a referendum results, Greece\’s finance minister Yanis Varoufakis announced he was quitting to assist \”smooth talks\” between Greece and it is creditors.

Emergency negotiations are now set to start Tuesday as euro-area leaders will come across in Brussels. Already there is a sense of urgency in Greece: The nation has been placed directly under capital controls for the past week, with Greeks being limited to withdrawing only 60 euros each day from ATMs.

Greece\’s banks are presently being kept alive through the European Central Bank\’s Emergency Liquidity Assistance program (ELA), which supplies about 89 billion euros in funding. Research indicates that Greek Prime Minister Alexis Tsipras requested another three billion euros as part of the program, saying there was an immediate need to lift the main city limits around the country\’s banks.

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