US Futures are taking the Greek Vote in Stride, off 60bp and steadily rallying back from the overnight lows as Varoufakis resigns, may signal Tsipras bringing new proposals, helping markets recover. No shock, but Europe is underperforming the USA with German markets off 1.2% led by a drop in the Fins. Peripheral Markets are faring worse, with Spain off 2% and Italy 3% as contagion fears from the overwhelming “no” vote weigh. Volumes quite benign in Europe as peeps await tomorrow’s Eurogroup and the ECB as it must decide whether to keep Greek banks alive.
While Athens remains closed, The GREK ETF is marked 10% lower and nearing June lows, while NBG is offered 20% lower. Over in Asia, Shanghai initially opened 7% higher as PBOC threw multiple headlines at the selloff (No more IPOs, Brokerages must invest in market…), but heavy selling pressed the index to “only” a 2.4% gain. This hit Hong Kong for 3%, its worst selloff in 3 years. Aussie lost 1% into the RBA decision tonight, while the Nikkei was 2% lower as haven trades pressed the Yen higher.
